USDCHF has been in a downtrend since a months now, and have particularly moved 500 pips from its pegged value of $1.000. Now, market has tapped the support level in a downtrend. Ofcourse, we will not be selling at the support. We will be looking to short at the resistance level. The price at the resistance level would be at 0.9720. At this level, we will see a lower high being formed for another leg towards the lower low. This lower low has the potential to break the support and continue going down. 

The ascending trendline has beed formed and needs to broke out for sells. This breakout sell will confirm our sentiment towards the bearish side and we will have another shot to short USDCHF once the support has breached the support and the trendline. The support level sits at 0.9550.

The golden retracement area of 75-78.6% aligns with the resistance level and has high potential to grab liquidity at this level. This is an ideal area to go for shorts.

Both the EMA's are bearish but the death cross still remains bullish as EMA 200 is below the EMA 50. At the resistance, we do anticipate another confluence being formed with other technical factors of retracement and resistance. This addition of the 

Both the oscillators are in their bearish zone. In order to take a short, we wait for the oscillators to neautralize themselves. This will align with our technical analysis on the prices. We might see a corrective move from this support till the resistance. From the resistance, we will see the oscillators being neutralized. This way, we will have a good short setup.

USDCHF shorts

Vasl Capital

May 26 2022

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