Pattern warriors collect ’spherical!

Might had been month for USD/CHF, which bounced from its .8850 lows to its present ranges close to .9150.

That’s a cool 300 pips in a number of weeks!

USD/CHF Every day Foreign exchange USD/CHF Every day Foreign exchange Chart by TV

What makes the setup attention-grabbing right this moment is that USD/CHF is knocking on the 50% Fibonacci retracement of March and April’s downswing.

Not solely is the 50% Fib close to the each day chart’s 100 SMA resistance, it’s additionally not too removed from a descending channel ceiling that hasn’t been damaged since November final 12 months!

Are we taking a look at a possible play to leap on USD/CHF’s downtrend?

Take word that yesterday’s candlestick closed with an extended bearish wick. It additionally doesn’t damage that USD/CHF is sporting a bearish divergence on the each day timeframe.

Shorting at present ranges or the primary indicators of bearish momentum would set you up for a cool win if USD/CHF finally ends up extending its downtrend and making new 2023 lows.

Satisfied that USD/CHF’s upswing nonetheless has legs?

You possibly can make the most of the present inexperienced candlesticks and take short-term trades till USD/CHF sees some exhaustion.

Whichever bias you select to commerce, ensure you’re training your finest threat administration strikes and following your buying and selling plan like yo momma made it!