USD/CHF Bearish Divergence Hints More Profit Taking Ahead

2 min read
Davin Wu

Davin Wu

Market Analyst and Educator

Dear Traders,

The USD/CHF has formed bearish divergence, with price stalling at +2/8 octave. Bearish divergence happens when price makes a higher high while the oscillator makes a lower high.

POC zone is 0.9903-0.9913 [D H4, +1/8, ATR Projection High]. Should we see a bearish rejection from this zone, targets will be 0.9839 [D L3, 5/8] and 0.9825 [D L4, 4/8], eventually reaching 0.97961 [2/8, previous swing low] levels if volatility and momentum holds.

For divergence to remain stable, price should not close above 0.9929 where the resistance is strong

The analysis has been done with the
CAMMACD.MTF template.
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Many green pips,
Davin Wu

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