USDCHF didn´t break important resistance

2 nov 2018

For the last few months, USDCHF was growing very steadily and by the end of the October it tried to break strong resistance 1.0067 but failed to do so. After the false-break of resistance, USDCHF created a candle pattern Engulfing, after which it should be falling in the next few weeks. When engulfing was created, divergence was confirmed and now the market should head to the blue zone, if not further. We have placed a short position with a stop-loss above the resistance targeting around 100-150 pips.