So the USDCHF near-term uptrend is supported today. But the price action is not so clear for trading. How to read this price action? First, we must start as always with the top-down analysis. Going from the Monthly chart to Daily. On a Monthly chart, we can see the bearish piercing candle last month, that has retested almost 50% of the previous bullish candle, and we have a rejection again near the 1.000 level.
The weekly chart reveals the downtrend Pitchfork channel despite the Monthly price action bullishness. The rejection level is 0.9950 level which is the intersection point of the upper channel line. Looking at the weekly forming, we now have the key level which is 0.9950 level. But how to trade this?
Respecting the bullishness seen on the higher time-frame charts, but first, this will be the short trade based on a daily rejection from the key level, because it is offering us good risk-reward trade. The SL will be at the 0.9930 level targeting 0.9730 level. If the trade would be stopped out, then we will reverse it to the long trade entry, but only in the case of a clear daily close above the 0.9930 level.
Everything is for trading, you just need the right trading strategy. Risking 50-100$ per this two possible trades will bring you 1:2 target. Keep it simple in your analysis and trading decisions.
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