USD/CHF selling off into major support at 61.8% Fibonacci

USD/CHF strong impulse sell down onto major Fibonacci 61.8% coinciding with price smashing through lower Bollinger band, RSI oversold territory and drop in volume.

USD/CHF

USD/CHF – This signal cluster shouldn’t be ignored following a bullish candle reversal for a short term bullish advance.

 Key Points:

  • Price holding below the 200 EMA
  • Price holding below the 50 EMA
  • Price outside Bollinger Band coinciding with 61.8% Fibonacci retracement
  • RSI moving into the oversold territory
  • Drop in volume

Key Levels:
Support – 0.91150
Resistance – 50 EMA, 200 EMA, 0.91630
Entry Zone:
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 0.91170
Supporting Entry – 0.91250
Candle Reversals for entry

  • Bullish Hammer
  • Bullish Engulfing
  • Bullish PiercingBullish Candlesticks

 
The Risk:
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.
 
IF: Price breaks below 0.90998 – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.
 
Reward / Reward Targets:
Optimal Entry 0.91170 – Target 1 0.91630 = 3x Reward to Risk
Supporting Entry 0.91250 – Target 1 0.91630 = 1.5x Reward to Risk

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