USDCHF starting to break out nicely, watch for a strong rise
Intro: USDCHF has broken our strong descending resistance line, huge potential for a rise from here.
Buy above 0.9406. Stop loss at 0.9377. Take profit at 0.9462.
Reason for the trading strategy (technically):
Price has broken major descending resistance-turned-support line signalling a possible rise from here. However, we’re still seeing major resistance at 0.9406 (horizontal swing high resistance, Fibonacci retracement) and price needs to break this level to open a strong move upwards towards 0.9462 resistance (Fibonacci extension, horizontal swing high resistance). We’re seeing Ichimoku clouds support our recent bullish sentiment so a close above our buy entry would be in line with the bullish momentum we’re expecting.
RSI (55) has made a similar bullish exit signalling that we’re starting to see a change in momentum from bearish to bullish.
Buy above 0.9406. Stop loss at 0.9377. Take profit at 0.9462.
Reason for the trading strategy (technically):
Price has broken major descending resistance-turned-support line signalling a possible rise from here. However, we’re still seeing major resistance at 0.9406 (horizontal swing high resistance, Fibonacci retracement) and price needs to break this level to open a strong move upwards towards 0.9462 resistance (Fibonacci extension, horizontal swing high resistance). We’re seeing Ichimoku clouds support our recent bullish sentiment so a close above our buy entry would be in line with the bullish momentum we’re expecting.
RSI (55) has made a similar bullish exit signalling that we’re starting to see a change in momentum from bearish to bullish.