The Swiss France is starting to settle down and stabilize after the big SNB event last month. Liquidity providers are opening their doors again and it’s back to business as usual with trading the Franc.
The really large drop caused by the SNB releasing their peg created a large candle as we know, and on the Metatrader platforms, everything scales relative to the largest candle. Until that large event candle clears the screen completely, we are going to be looking at what appears to be tiny candles.
Don’t be fooled, these candles still have some decent movement in them, averaging a daily high/low range of 100 pips.
Price has just busted above a resistance level here now, which is holding as support – a swing level.
On Friday, the market closed as a bullish rejection candle after the bulls denied any moves lower into support again. This bullish rejection candle has a 70 pip range, so it is decent. It also has a nice strong close in the body and forming at this key swing level.
Price looks like it’s going to try push higher off this level, and this kind of price action could be the framework you could build a long trade off.