USD/CHF (dollar-franc): a detailed technical orchestration

30 mag

Judging by the Daily-timeframe build-up, we might imply that the price has nicely tapped into the liquidity region laying above the right shoulder of the recently formulated Head&Shoulders pattern, and now we are observing bearish moves in the destination of two zones - the pattern neckline and the 0.888 key level. Upon reaching the pattern neckline (0.9 region), we will be observing price behaviour before taking further action. If we are able to witness some rejections, then, there is a high probability that the 0.909 region will be re-visited for a re-touch (break+retest formation) before further bearish moves resume and, potentially, drive the price in the destination of the 0.888 level. On the other hand, if no signs of a bounce are printed on the 0.9 zone and the break is evident, then, the price will have enough potential to keep dropping till the 0.888 region.

All in all, we recommend to have eyes on the day-to-day development and make decisions with no rush.

Hope this idea is of help!