Reversal pattern on USDCHF

Hi guys,

i’ve been looking at this pair often lately, and i’m still looking to sell this because i think we need to see a relief rally before eventually continuing to the upward direction. At this moment, we’re testing a very strong resistance level , both weekly and daily, and we’re doing so in overbough condition (heavy overbought). On a lower timeframe, such as the 4H, you can see price is still overbought and has created a nice reversal pattern in the form of a pinbar + an engulfing to the downward side. I’m taking this short, with stops and targets as showed.

If you have any question/idea, feel free to share it below.
Otherwise, see you in the next chart!

By admin