USD/CHF Weekly outlook 19 March – 23 March
The USD/CHF closed last week with a long tailed bearish pin bar suggesting a continuation of the greenbacks decline against the Swiss Franc.
The bearish pin seen last week showed a clear rejection and almost perfect bounce of a 61.8% Fib retracement from the markets most recent downswing.
The bearish pin bar also retested and rejected a strong support and resistance area at 0.9300 as seen in the chart below, which further confirms our bearish outlook at this time.
With the strong price action seen on the weekly timeframe we’ll be looking to short the pair at a 50% retracement of last week’s price. Initially we’ll be targeting 0.9140 which is last week’s lows, placing our stops just above the pins high.
The strength of both the Fibonacci retracement and support/resistance level, signal the market should continue its bearish decline which could make for an excellent longer term trade if managed well.
