From the chart, it’s obvious that the currency pairs are swinging and not stable as anticipated. In my view, this currency pair looks ripe for a down trend and considering the technical developments in the last few months, selling the USD at-least temporarily can yield some results.
Note that in the better part of Q1 2018, sellers have been in charge. The USD recovery has been visible only in the last month but since Friday’s NFP disappointment, sellers are looking on building on their gains.
When we paste a Fibonacci retracement tool between Q1 2018 high lows, the double bar reversal pattern is forming right at the 23.6% Fibonacci retracement level. That’s not all, there is a stochastic sell signal turning from deep the overbought stochastics and a minor bearish divergence pattern.
In the 4HR chart, prices are trickling down just like in the daily chart and like the former, stochastics are bearish.
Advised by this, this shall be my USDCHF Trade plan:
Stop Loss: 0.9630
Take profit: 0.9420
Have a good trading day and let me know what you think!!