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29 Oct 2014
USD/CHF: Potential role reversal on the hourly - 2ndSkies
FXStreet (Bali) - Chris Capre, Founder at 2ndSkies, is pointing out the potential for a role reversal setup in USD/CHF hourly chart, after the pair broke a key support area.
Key Quotes
"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."
Key Quotes
"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."