USDCHF Top-Down Analysis (Long then Short)

Hello Traders,

Here is the Top-Down Analysis of USDCHF (Monthly, Weekly, Daily for direction and 4H for entry) for

Week 50 - Dec 07

M > Price has been bearish for 3rd month in a row and is testing monthly demand level now. Price can continue with its drop if it fails to correct itself, we can see bullish divergence hence some short term correction can be expected.

W > We can see nice bullish divergence and can expect correction to the upside.

D> Market closed the week with minor correction to the upside. We can see an over extended M formation and can have two possible targets.

As per COT CHF closed Long and added few Short with strongly +ve net positions. SXY has been gaining strength for past 3 weeks with a massive gain last week. We can expect some correction this week as strong bearish divergence can be seen for SXY.

4H > We can see rejection of price at demand level and expect bullish correctional move.

Pair Correlation > USDCHF has negative correlation with EURUSD.

This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.

Thank You
AP17FX