FX.co ★ USDCHF Bearish Reversal | 27th Jan 2022

On the H4 timeframe, price is abiding to a descending channel, signifying a bearish momentum. Price is reacting at 1st Resistance, we can expect price to drop from 1st Resistance in line with 161.8% Fibonacci extension and 78.6% Fibonacci projection towards 1st Support in line with 78.6% Fibonacci projection. Our bearish bias is further supported by the stochastic indicator where the %K line is approaching the resistance level.

Trading Recommendation

Entry: 0.92449

Reason for Entry: 161.8% Fibonacci extension and 78.6% Fibonacci projection

Take Profit: : 0.91076

Reason for Take Profit: graphical support level and 78.6% Fibonacci projection

Stop Loss: 0.92758

Reason for Stop Loss:

100% Fibonacci projection