USDCHF Chart Structure Idea - Inverse Head & Shoulders
USDCHF has been pumping nicely over the last few weeks since historic lows were touched back in january.
Prior to the bullish run we can identify a clear bearish channel continuation pattern that drove price down to these key level lows.
Price action shows a potential breakout of the upside of the channel (*200 pips) however momentum suggests an un-organic increase in price demand, due to US NFP news being highly positive.
Thus giving a false short term value only while influenced by this news.
I believe price will make an attempt to regulate itself around these key weekly highs now, the short target lays around 0.91600-0.91800, which is also fib level 1.618, I'll anticipate potential bullish momentum before a longer stretch playing back down to the down side, eventually targeting 0.89800< .
I see .898 being a potential right shoulder in respect of the daily chart structure as indicated.
A nice liquidity zone here at 0.89800-90200 too as our target to give added confluence that we are always mindful of where banks and institutions want to go next!
Prior to the bullish run we can identify a clear bearish channel continuation pattern that drove price down to these key level lows.
Price action shows a potential breakout of the upside of the channel (*200 pips) however momentum suggests an un-organic increase in price demand, due to US NFP news being highly positive.
Thus giving a false short term value only while influenced by this news.
I believe price will make an attempt to regulate itself around these key weekly highs now, the short target lays around 0.91600-0.91800, which is also fib level 1.618, I'll anticipate potential bullish momentum before a longer stretch playing back down to the down side, eventually targeting 0.89800< .
I see .898 being a potential right shoulder in respect of the daily chart structure as indicated.
A nice liquidity zone here at 0.89800-90200 too as our target to give added confluence that we are always mindful of where banks and institutions want to go next!
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