USDCHF Forecast and Trade Setup for the week ending 15th August, 2014

USDCHF Forecast and Trade Setup for the week ending 15th August, 2014

Following my forecast from the 1st of August of my bearish view of this pair, Now a week later, the market had given extremely good signals to confirm that the trend may shift to the downside in the near term.,

Weekly Chart

• Stochastic Negative Divergence
• Exhaustion Candle rejection from weekly resistance zone and 38.20 fib

Daily Chart

• Stochastic Crossed over and pointing south
• MACD Crossed Over
• Exhaustion Candles with continuous wicks / and also from the upper channel trendline

• Bearish Harmonic Bat Pattern completing at 88.6 / Resistance zone and which is also a inverse previous swing fib ext of 161.8
• Candle Closed below Tenken-san line (Red line) for the first time since the bullish run

Hourly Chart

• Performed a lower low while breaking resistance
• 30 and 50 SMA crossed
• Negative divergence with RSI under the 50

• Clouds forecast changed to bearish
• Positive Divergence on stochastics - which could be ignored

Outlook Trade opportunity

Clearly we have tons of bearish points (In red) and only one bullish points (in blue), therefore, if your not already in a trade, I would look for price to retrace to a 38.20 fib and look for price action (engulfing/exhaustion/doji etc candle) to take a short position.

Risk Level LOW

Tips -

Always take note of any economical news event on our provided calender below