USDCHF: break higher or move lower

Price on USDCHF is on the level that I will consider as the important daily level. As you can see on the chart below, price is now on the daily resistance area. This level has been respected several time in the past, with price rejected either high or lower. If we consider the chart from late March 2016, the price has formed Double Top and move lower. This double top area acts as the daily resistance level.

What will I do from here? There are two things that I will consider.

1). If the price could move higher and break the daily resistance area, I will wait for the price to pullback and retest the daily resistance area (which is act as the new daily support area), then start hunting for an opportunity to go long. This bullish price action opportunity could emerge in the intraday time frame such as 4-hour or 1-hour chart.

2.) If the price respected the daily resistance and forms an obvious bearish price action signal, then I will go short. I still consider going short since the resistance level is clear and solid. I will take it as the range/sideways trading position.

USDCHF daily chart – zoom out

USDCHFDaily-160517-zoom out

USDCHF daily chart – zoom in

USDCHFDaily-160517-zoom in


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