USDCHF is a market we’ve been talking about in the weekly commentary a lot recently. Price has been jamming up between a stubborn resistance level and a rising trend line – squeezing price into a wedge.
This week the market exploded upwards from an Indecision Candle Doji pattern, and broke through the upper containment line.
Now price has clearly closed in new highs, we will be looking to buy and bullish price action signals that occur when the market comes back down to re-test the old resistance level and hold as new support.
We need to wait for price action to communicate that the level has a good chance of holding as support, and not just slice straight back through.
Reminder that NFP is also being released this week.