USDCHF Rough Diamond

USDCHF is forming a diamond formation after all this range trading we’ve had last couple of weeks. This pattern in our case, when the pair has moved significantly higher, is a sign of a top; to better take advantage of this we are thinkiing of a possible short entry close to current levels with a very tight stop just above the 1.1050 area for aggressive traders, and a bigger stop above 1.1100 for a conservative approach. Potential target should be the 50% Fibonacci retracement of the move up, around the 1.0550-1.0600 area. USDCHF is forming a diamond formation after all this range trading we’ve had last couple of weeks. This pattern in our case, when the pair has moved significantly higher, is a sign of a top; to better take advantage of this we are thinkiing of a possible short entry close to current levels with a very tight stop just above the 1.1050 area for aggressive traders, and a bigger stop above 1.1100 for a conservative approach. Potential target should be the 50% Fibonacci retracement of the move up, around the 1.0550-1.0600 area.

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