AUDCHF (Daily) SHORT IDEA: Retesting the MAIN RESISTANCE
POTENZIAL PROFIT: 100 PIPS
TECHNICAL ANALYSIS:
-Since the end of March 2020 until the beginning of June 2020, the market has been following a strong uptrend, bouncing on an important weekly resistance zone. During this bullish movement, the price was all the time over the EMA 50, this confirmed the strenght of the market, plus an increasing of volumes, momentum and volatility.
-The main resistance zone rejected the price and since the 10th of June 2020, the market has been moving in a side trend, occasionally retesting the main resistence.
On the 1st of September the price started falling down in a downtrend (overbought price and high momentum gave a nice short opportunity.)
-On the 20th of October, the price bounced on the support zone at about 0.63715, inverting the trend. (the price failed the retest of the support, clear sign of weakness to continue the downtrend).
CONCLUSION:
The price is actually in uptrend, it reached a really strong resistance level that already rejected the price in the past.
The price is overbought but it still seems to be strong enought to carry on for a while.
I would not open any short trade right now, because I can't see any sing of inversion, I'll study the price action during the next days and eventually get a good short opportunity after the price will break the daily support level at 0.66912.
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Trade Safe,
Gianni
TECHNICAL ANALYSIS:
-Since the end of March 2020 until the beginning of June 2020, the market has been following a strong uptrend, bouncing on an important weekly resistance zone. During this bullish movement, the price was all the time over the EMA 50, this confirmed the strenght of the market, plus an increasing of volumes, momentum and volatility.
-The main resistance zone rejected the price and since the 10th of June 2020, the market has been moving in a side trend, occasionally retesting the main resistence.
On the 1st of September the price started falling down in a downtrend (overbought price and high momentum gave a nice short opportunity.)
-On the 20th of October, the price bounced on the support zone at about 0.63715, inverting the trend. (the price failed the retest of the support, clear sign of weakness to continue the downtrend).
CONCLUSION:
The price is actually in uptrend, it reached a really strong resistance level that already rejected the price in the past.
The price is overbought but it still seems to be strong enought to carry on for a while.
I would not open any short trade right now, because I can't see any sing of inversion, I'll study the price action during the next days and eventually get a good short opportunity after the price will break the daily support level at 0.66912.
If you enjoy my FREE Technical Analysis, let me know that with a big LIKE, I'll be so glad!
Have you got some similar or interesting idea? Feel free to leave a comment below sharing your idea!
Are you interested getting more FREE Technical Analysis like this? SUBSCRIBE my channel and you won't miss anything!
Trade Safe,
Gianni
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