USD/CHF Retesting Broken Channel Support

USD/CHF Key Points

• Higher time frame bullish channel broken to the downside.
• Not in the direction of the higher time frame trend.
• Clean intraday retest of broken support now as resistance.

USD/CHF Technical Analysis

I actually had started writing this piece on the weekend, but then the (not so) inversely correlated EUR/USD double bottom that I published yesterday took away my attention.

This is a weird one, because I am conditioned to think that USD/CHF is a perfect inversely correlated pair to EUR/USD.

Well that's not really the case according to the narratives that I've been blogging.

Markets not doing what the textbook tells you that they should do?

NO WAY! :)

In any case, let's take a look at the USD/CHF charts that caught my eye:

First up as always, we start by taking a look at the higher time frame chart. In this case, the daily.

You can see that price has broken trend line support at the red line. A line that will become significant in helping to clearly spot retests on the sloped trendline.

I haven't marked it on this chart, but it's also interesting to note that while still within the channel, price did retest previous swing low support as resistance. A retest that gave price the momentum to break out.

Remember how we spoke about trying to find early entires on that GBP/NZD technical analysis piece? Well, this is another, slightly different example that you can study.

Moving onto the second, intraday hourly chart, you can see it doesn't really matter where you had gotten in.

I mean look how clean the retest is!

So there are your higher time frame levels. Now zoom in, find your short term retests and manage your risk.

Trading only has to be as hard as you make it.

Best of probabilities to you.

Dane.

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