FX.co ★ blaise.rogahn | USD/CHF

Currency pair USD/CHF - W1 chart. On this higher timeframe you can see how at the beginning of the year the price dropped down, while a bullish divergence formed on the MACD indicator I use. Large and beautiful, a rare occurrence on such a large-scale chart. I considered this a reason to work long on the lower timeframes, and all sell setups were worth skipping. I will consider this divergence to have played out once the price moves above the area of the 0.8138 level. After this divergence formed, the price, although slowly and moving sideways week by week, still crawled upward. The 0.7772 level where the price was treading water is a mirror level at the edge of the decline; for several weeks it held the line as resistance, but was eventually broken to the upside, changed its status from resistance to support, and became a mirror level. And it would seem that all the conditions for growth are in place, but for some reason we got stuck here for quite a long time. I assumed that the second wave had finished at the mirror level and the development of the third wave up was expected, and that is what happened. A bullish pattern is visible – an inverted head and shoulders. It turns out that at the 0.7772 level there was simply accumulation going on, the price was kind of charging up for a move up, accumulating more sellers in order to drag them higher. It was obvious to me that overall in the market, excluding metals, all the prerequisites were there for the US dollar to dominate. They held the price here until the right time, then waited for the Fed interest rate decision, and the US dollar started to strengthen across the market. Naturally, after such a significant rise there was a pullback to the 0.8010 support level. New buying started from there. Most likely, before the uptrend continues, they will push the price down once more to attack this level and go slightly below it. After that the real move up may begin. This is also suggested by the CCI indicator I use, which is ready to exit downward from the upper overbought zone.