USDCHF potential bearish drop | 30th Dec 2021

On the H4 timeframe, price broke out of the ascending trendline support, signifying potential bearish momentum. We can expect price to drop from 1st Resistance in line with 23.6% Fibonacci retracement and 61.8% Fibonacci projection towards 1st Support in line with 127.2% Fibonacci extension and 100% Fibonacci projection. Our bearish bias is further supported by price holding below the Ichimoku cloud and RSI is abiding to the descending trendline resistance.

Trading Recommendation

Entry: 0.91562

Reason for Entry:

23.6% Fibonacci retracement and 61.8% Fibonacci projection

Take Profit: :0.71203

Reason for Take Profit:

127.2% Fibonacci extension and 100% Fibonacci projection

Stop Loss: 0.91790

Reason for Stop Loss:

38.2% Fibonacci retracement and 100% Fibonacci projection