Bearish Flag Setup For USD/CHF

Published 04/04/2019, 05:41 AM
EUR/USD
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GBP/USD
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USD/CHF
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That vote to block the No Deal Brexit did not spark large movement on the Cable. As we said in our previous analysis, the financial market is now pretty resilient to the news around Brexit and it is actually very difficult to move GBP/USD right now.

From the technical point of view, on the Cable, we are in the worst place to trade – exactly in the middle of the symmetric triangle pattern. Buyers have one advantage though. The price is above the horizontal support and recently made an inverse head and shoulders pattern. Thanks to this, the sentiment can be described as slightly more positive.

Next instrument is the EUR/USD, which recently tried a reversal, but the price stopped on the 23.6% Fibonacci. The price still can create the inverse head and shoulders pattern, with this resistance being the neckline. The price closing a day above the Fibonacci mentioned above will be an invitation to go long.

The best trading occasion can be spotted in the USD/CHF. The price is creating a bearish flag under the neckline of the triple top formation. According to the technical analysis, we should see the breakout of the lower line of the flag soon. Going short before that can be a bit premature so be patient and stay sharp.

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