The market structure on USDCHF is bearish. Market was unable to breach the strong resistance/supply zone at the price of 0.9187. At this point, USDCHF is forming LH's and LL's. We anticipate market dropping down to the support level after being rejected from the resistance.

At the resistance level, we have 61.8% fibonnacci retracement level, totaly aligned with the resistance level. This adds to another short confirmation.

We have a bearish wedge pattern formed on the USDCHF. The market has a resistance trendline and a support trendline. Market rejected the descending trendline and broke the ascending one, hence inducing the breakout sells. After the breakout sell, USDCHF retraced back towards the resistance and continued the trend.

Both EMA's have breached the market towards the bearish side. Now that the breakout sell on EMA has happened, we anticipate a retest on either of the EMA's. If we get a good retest at the resistance leve, we will have 4 factors for our short position. If we don't, we are still good to go for a sell at the resistance, as we have 3 factors already.

Both oscillators are in the bearish zone and are slightly below the neutralized level. This means, USDCHF is indicative of a bearish pressure and has room towards the over-sold regions.

USDCHF is a good short setup and has a high probability to slide down given the market structure. Once we are in 30 pips profit, we will secure our position by bringing the stop loss to break even.

USDCHF sells

Aug 31 2021

Stop Loss -0.38%

Holding time 7d6hr

0.91730

Entry price

0.92080

Stop loss price

1