We published an article on 10th July portraying neutral sentiments on USDCHF along side bullish and bearish conditions that the market might follow. We explained that the market was around an important support zone 0.9120 where chances of bullish reversal where high after the market provided a breakout above the same price on 16th June. 0.92557 was one of the major resistances from April which become a reason for bearish reversal and threw down the pair towards our critical support line  0.90200 where we have our lower trend line present. The aforementioned support zone was emphasized to have the potential to provide strong liquidity in shape of hawkish sentiments and we actually witnessed that on 3rd August. Most probably the market structure made in past two months was more of a bullish correction which ended at 0.92500 and then followed by a smaller degree of bearish 5 wave move to once again retest our 50% fibb retracement leveL.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

From current market scenario in daily, our upper trend line is broken and the market reversed its gains from 61.8% fibb level and now diving towards 50%fibb level. We can also witness the formation of inverted head and shoulder pattern with a clear finishing at 0.91169 if provided by a bullish reversal. This will be a regular inverted head and shoulder with support levels at the same neck line price as the previous i.e 0.91169. If we got a closing below 50% fibb, we will consider Swiss Franc being in control and bears driving USDCHF more lower towards 0.90229 - which can then be a good price for executing buys. In case we got to witness the market taking a reversal and providing us with a fractal closing above 0.92000-0.93000, then this will be taken as the change in trend with bulls in control. Also keep in mind that in four hourly chart the market is still in progress of finalizing a higher degree of bearish correction. 

USDCHF

Aug 14 2021