USDCHF has been Bearish on the H4 chart. The selling pressure is not that strong, but the price has been heading towards the South by making new lower lows. Today’s first H4 candles came out as Bearish candles. It is time for the price to consolidate or make some corrections on the lower time frames. If things go accordingly, then we might get an opportunity to take a short entry on the pair. Let us have a look at the USDCHF chart.
USDCHF Price Action Analysis – 11th Oct 2018
The level of 0.99000 has been working as an Intraday Resistance. It produced two consecutive H4 Bearish candles. If the current candle comes out as an Insider bar and later we get an H4 Bearish reversal candle at the level of 0.98755, then the price would head towards the level of 0.98000 without having that many pauses. Let us have a look at the summary of the trade…
- Sell Limit Order: 0.98755
- Stop loss: 0.99000
- Take profit: 0.98000
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
As we see that both our Stop loss and Take profit levels are on the “Round Number”. A round number plays a big role in the Forex market. Especially, to set a Take profit level, we must consider the round numbers. It is often seen that the round-numbered levels make the price have some corrections. Yes, it depends on the time frames. The bigger the chart, the round numbers associated with it plays the bigger role. In today’s chart, 0.98000 is a round number and it worked as a Support level earlier on the H4 chart.
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