What I see
On the H4 chart of USD/CHF, price broke the H4 support around 0.8300–0.8290 and closed below it. Price is currently trading at 0.82707. Above it sits a strong weekly resistance zone at 0.83394–0.8476, from which price has been moving lower.
Key levels
- Resistance H4 (former support): 0.8300–0.8290
- Support D1: 0.82246–0.81827
- Stop loss (SL): 0.8325
- Scenario invalidation: 0.8250
My plan
If price returns to the 0.8300–0.8290 zone, I will consider a smaller short trade. I would place the take profit (TP) at the D1 support near 0.8225 and the SL at 0.8325.
The scenario is invalid if price fails to make a pullback to higher levels and breaks straight below 0.8250. In that case I stay out and wait for a new structure to form.
