Note

USD/CHF Price Prediction: Head and Shoulders hints at further declines

· Views 16
  • USD/CHF has formed a bearish H&S pattern which hints at more weakness. 
  • More downside will be confirmed by a break below the base of the pattern or its “neckline”. 

USD/CHF has likely formed a bearish Head and Shoulders (H&S) reversal pattern on the 4-hour chart, which, if valid, indicates a probable decline is on the cards for the pair. 

USD/CHF 4-hour Chart 

USD/CHF Price Prediction: Head and Shoulders hints at further declines

The H&S is composed of a peak, the “head” (H) and two shoulders either side (S). A break below the neckline at the base of the pattern confirms a decline lower. The pattern is a bearish reversal sign. 

On USD/CHF the neckline is at around 0.8797. The initial target for the pattern is at 0.8703, the 61.8% Fibonacci extension of the height of the pattern extrapolated lower (red line labelled 0.618 on chart). 

Volume has declined during the formation of the H&S (red dashed line), further enhancing the validity of the pattern. 

Share: Feed news

Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.

FOLLOWME Trading Community Website: https://www.followme.com

If you like, reward to support.
avatar

Hot

No comment on record. Start new comment.