USD/CHF: Bulls Back in the Driver’s Seat?

14 нояб. 2024 г.

Pattern Breakdown
This chart is just showing off with all the head-and-shoulders patterns. We had a couple of textbook setups earlier in the year that gave us clean breakdowns, and now? We’ve got an inverted head-and-shoulders at the bottom. Translation: USD/CHF is hinting that it’s tired of going down and might be ready for a serious comeback.

The Old School H&S Patterns:

Back in early and mid-2024, we had two solid head-and-shoulders setups that screamed bearish. Price cracked those necklines, and down it went. Easy plays for the bears back then. 👇
Current Inverted Head-and-Shoulders:

Now here’s the kicker – we’ve got an inverted H&S at the bottom. This is basically the market flipping the script and saying, “Time to go north.” It already broke the neckline, and USD/CHF is looking like it’s ready to rally hard. 📈💪
Target Zones 🎯
So where are we aiming if this thing keeps running? Here’s the roadmap:

Target 1 – 0.9000:

This is the first pit stop, and we’re almost there. 0.9000 is a big psychological level and a spot where sellers might try to slow things down. If it clears this, we’re talking serious upside potential.
Target 2 – 0.9200:

If the bulls keep charging past 0.9000, the next level to watch is 0.9200. Previous highs, solid resistance – this is where things get interesting.
Stretch Target – 0.9350:

Now, if we’re looking at a full-on reversal rally, 0.9350 is the ultimate bull target. It’s a strong level where sellers are likely to show up, but if USD/CHF makes it here, that’s a big statement for the bulls. 🐂🚀
RSI – Overbought but Still Kicking 💥
Right now, RSI is sitting around 72 – technically overbought. But here’s the thing: in breakout mode, overbought just means momentum’s hot. Could we see a little pullback? Sure. But that doesn’t mean the trend is done – it just means the bulls might need a breather.

The Playbook 📝
Entry Point: Look for a pullback toward the neckline around 0.8750 as a potential buy entry. If it retests and holds, that’s a prime spot to jump in.
Stop-Loss: Place it below the right shoulder at 0.8600. If it drops back there, we’re re-evaluating this setup.
Take Profits:
TP1: 0.9000 – first resistance.
TP2: 0.9200 – next major level.
TP3: 0.9350 – stretch goal if the bulls really want to flex.
Bottom Line
We’ve got an inverted head-and-shoulders that’s already broken out, signaling that USD/CHF might be ready for a comeback. Targets are 0.9000, 0.9200, and the big 0.9350 if momentum stays strong. RSI might be overbought, but that’s just saying the bulls have some energy.

This could be a sweet ride if USD/CHF keeps pushing, so let’s keep an eye on those levels and see if the bulls deliver. 👊