USDCHF had a bearish day yesterday. The daily candle closed with a strong bearish tone. Today’s first H4 candle came out as a strong bearish candle but the next candle came out as an Inside Bar. The pair looks good for the sellers. However, a correction is needed. If the price goes back to the breakout level and produces an H4 bearish engulfing candle breaching today’s lowest low, the sellers may go short on the pair and grab some green pips. Let us have a look at the H4 USDCHF chart. This trade idea was generated by our powerful Elite Swing Trader System.

The chart shows that the price had a bounce at the level of 0.99260 and produced a bullish Inside Bar. If the price goes back to the level of 0.99435, which was a level of support earlier and produces an H4 bearish engulfing candle breaching today’s lowest low, the price may head towards the level of 0.98880 with having a good selling pressure. Let us have a look at the summary of the trade...

• Sell Stop order: 0.99125
• Stop Loss: 0.99478
• Take Profit: 0.98706

Tip of the Day: The pair have been within an ascending equidistant channel on the daily chart. Today’s intraday price action seems to have made a breakout at the support of the channel. The daily traders must wait for today’s candle to be closed to consider it as a breakout. However, intraday charts’ breakout may attract the traders to go short on the pair, eventually, that may help the daily candle close below the support of the channel. Let us wait and see how it ends at the end. For more trade ideas, join the Price Action Society... If you like our analysis and would like to receive 3 to 7 trade ideas per day, then click here to learn more about the Price Action Society.