During the course of yesterday’s trading, the USD/CHF tagged the underside of the 0.99 handle and eventually pushed through these offers amid the US afternoon session. By and of itself, this is considered a bullish cue which will likely attract buyers into the market. While H4 traders are looking to buy, however, our team is looking to sell around the 0.9927 region: a H4 Quasimodo resistance (not seen on the chart).
Our rationale behind this approach stems from the higher-timeframe structures. Weekly action looks set to connect with supply coming in at 1.0092-0.9928, which has managed to cap upside in this market since mid-May 2016. In addition to this, the daily candles are currently en route to the supply seen at 0.9956-0.9921 that is glued to the underside of the aforementioned weekly supply area.
Our suggestions: Due to its connection with the higher-timeframe supplies, the aforementioned H4 Quasimodo resistance level is a high-probability sell zone. We would, dependent on the time of day, look to short from here at market with stops placed above the apex of the Quasimodo formation (0.9950) at 0.9955, targeting 0.99 as a first take-profit hurdle.
Our rationale behind this approach stems from the higher-timeframe structures. Weekly action looks set to connect with supply coming in at 1.0092-0.9928, which has managed to cap upside in this market since mid-May 2016. In addition to this, the daily candles are currently en route to the supply seen at 0.9956-0.9921 that is glued to the underside of the aforementioned weekly supply area.
Our suggestions: Due to its connection with the higher-timeframe supplies, the aforementioned H4 Quasimodo resistance level is a high-probability sell zone. We would, dependent on the time of day, look to short from here at market with stops placed above the apex of the Quasimodo formation (0.9950) at 0.9955, targeting 0.99 as a first take-profit hurdle.
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