USDCHF Top-Down Analysis (Long then Short)

Hello Traders,

Here is the Top-Down Analysis of USDCHF (Monthly, Weekly, Daily for direction and 4H for entry) for

Week 46 - Nov 09

M > Price has dropped to test monthly support again, for the third time in past 4 months.

W > Placing Fib on last bullish impulse we can see that price has already dropped till -0.272 Fib level. We can expect correction to the upside. We can also see bullish divergence.

D> Price is respecting downward resistance trend-line. We can see an M formation and expect price to move up till its neck for correction. Price can then drop to test weekly demand zone and move to the upside till daily supply zone.

As per COT CHF saw closure of both Long and Short, reducing net positions. SXY weakened during the said period however gained strength last week due to weak USD. We can see bearish divergence and expect some short term correction for CHF.

4H > Price ended the week with rejection to the upside however we have to use lower time frame for a reversal confirmation. We can see bullish divergence in 1H timeframe.

Pair Correlation > USDCHF negative correlation with EURUSD.

This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.

Thank You
AP17FX