The new week starts for the USD on the back foot. The Greenback is loosing almost on every front. First troubles we could have seen already on Friday, so Today we do have a continuation of the movements that happened at the end of the last week.
One of the most technical setups can be seen on the USDCHF, where Friday ended with a bearish shooting star pattern. The place, where this pattern is present is not random as it is a long-term horizontal resistance (orange). In the smaller time frames, that shooting star is additionally shaped like the head and shoulders formation, which strengtheners the sell signal. Another bearish factor here can be the false breakout of the green horizontal resistance but for that, we need to see the USDCHF to decline slightly more than now. If You are still not convinced to go short, you can wait for the breakout of the long-term up trendline. Price closing below the black line will be a super strong sell signal.
As for now, the green support holds, which is a short-term positive factor but in my opinion, that area should be broken soon and sellers will finally have an occasion to make some money on this instrument.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis
This article was originally posted on FX Empire
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