02 Nov USD CHF Now Top Of Watchlist For Potential Swing Short
USD:CHF has moved itself back onto my radar taking no.1 slot on my watchlist!
No guarantee of this yielding a short entry but I’d rather post it ahead of an entry than after a potential move has already started.
4 hourly hit resistance today, but what I really liked about it was how the candle wick extended beyond resistance to tag the 200MA and simultaneously test the price level (defined by the blue line) where the previous channel got broken. It’s amazing how many traders are unaware of this, but it’s common for the price level of a trend line or channel break to become future resistance or support.
Further to this, we have additional confirmation of resistance through the rejection of price from the 50% Fib retrace.
It’s hard to make a confident call on any currency that’s linked to the Euro in one way or another because of the current Euro situation, however, if price starts rolling over from this resistance I’ll be looking for a short entry ahead of a deeper pull back.
If price breaks through and we see 2 consecutive green 4 hourly closes above this resistance level, I’ll scrap the whole swing short idea. Certainly one to keep an eye on intraday during Thursday’s trading.