USD/CHF: Bearish engulfing candle may push the price down
|USD/CHF produced a bearish engulfing candle on the daily chart yesterday. Thus, the intraday traders may look to go short in the pair. The pair has been in a bullish correction on the major intraday charts. Upon finding resistance, the pair may make a bearish move later today. Let us have a look at those three charts.
USD/CHF Daily Chart
The chart shows that the price made a bullish move and had a rejection at 0.97985. It produced a bearish engulfing candle closing well below its previous candle. The daily traders are to wait for the price to consolidate and produce another bearish candle to go short in the pair. However, yesterday's candle has made a strong bearish tone in the intraday charts, such as the H4 and the H1. Let us now have a look at those two charts.
USD/CHF H4 Chart
The chart shows that the price consolidated at 0.98000 and made a bearish move. It had a bounce at 0.96870 and produced a bullish engulfing candle. Considering the reversal candle, the price may make a deep correction. The level of 0.97430 may work as a level of resistance. If the level produces a bearish reversal candle, the sellers may go short below the level of 0.96870. It may find its next support at 0.96100. On the other hand, if the price makes a bullish breakout at 0.96870, it may get choppy and consolidate around 0.98000 again.
USD/CHF H1 Chart
The H1 chart looks good for the bear. The price after being bearish for a long time had a bounce at the level of 0.96870. It has been heading towards the North to make a bullish correction. The level of 0.97275 may work as a level of resistance. If the level produces a bearish reversal candle, the sellers may go short below the last swing low. The price may head towards the south with good bearish momentum and find its next support at 0.96440. If the price makes a bullish breakout, it may find its next resistance at 0.97460.
The daily traders are to wait to go short in the pair. The H4 traders may get an opportunity, but the H1 traders are on their toes to go short in the pair. Since the daily support is quite far and offers the price to travel towards the South, the H1 sellers may make full use of it.
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