USDCHF – Breaks Key Support, Potential Role Reversal Setup (1hr)
After forming a mild bounce off the key support at 9475, the pair slammed right through it in one hour. What is interesting is the price action after the break.
Initially forming a bullish pin bar, the pair then reversed course and printed a bearish pin bar off the key support (now resistance). This may act as a role reversal setup so traders should watch for a potential trade.
My only gripe with this is how the pair has printed 7 of 8 bull closes since the drop on the 1hr chart. This isn’t what I’d call ‘typical’ for a corrective pullback, along with the wicks mostly on the downside.
So lesser risk than usual is what I’d advise should you short it. If we see aggressive selling from there, then 9400 would be under attack. A close back above here creates a potential false break scenario.
Also in our members trade setups commentary today, we cover potential trade setups on the EURJPY, Nikkei 225, EURUSD, EURGBP, USDCAD. Click here to become a member.
Which stock should you buy in your very next trade?
AI computing powers are changing the stock market. Investing.com's ProPicks AI includes 6 winning stock portfolios chosen by our advanced AI. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. Which stock will be the next to soar?
Unlock ProPicks AI