• FxWirePro: usdchf forms bearish engulfing pattern, good to sell on rallies

    Source: FxWire Pro - Technicals / 18 Oct 2019 14:12:59   Europe/London

    Candlestick pattern- Bearish engulfing pattern 

     

    Potential Reversal Zone (PRZ)- 0.9800

     

    USDCHF trades lower for 2nd consecutive days and lost more than 100 pips on broad-based US dollar selling. The weak US retail sales and Philly fed manufacturing index has increased hopes of rate cut by the Fed in the next meeting. But the slight easing of geopolitical tension has decreased demand for Safe-haven assets like yen, gold is to support the pair at lower levels. 

     

    The overall trend is weak if resistance 1.10030 holds and decline from 1.102369 will get completed at 0.96598 only if it breaks that level. The near-term resistance is 0.9920/0.9950.

     

    On the flip side, near term support is around 0.9840 and any break below will drag the pair down till 0.9800. Any violation below 0.9800 targets 0.9690/0.96680.

     

    It is good to sell on rallies around 0.9880-825 with SL around 0.9920 for the TP of 0.9800

     

     

     

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