We always start our analysis by looking at the H4 charts.

H4 chart on USDCHF 3 Apr 2014

• Previous trend is down
• There is no change to the down trend yet however from the recent boxes we can see price is more up.
• Price is currently at a resistance, price needs to clear this resistances if it were to head higher.

Where did this two resistances come from?

Let’s look at the Big Picture on a higher time frame.

Resistance on Weekly Chart of USDCHF

• On the Weekly charts, we see recent turning points at previous support levels. This in-turn becoming possible resistances now that price is below.
• Putting in the boxes, we also see that if price can clear the higher of the 2 resistances, it would have effectively done a WR of 2 years low.

So, what now?

When the charts do not offer a direction, do not over predict. Instead wait for the market to let you know. However this doesn’t mean we cannot prepare for either possibilities.

Possibility #1: Price continues down (H4T)

Charting a trend continuation on H4 of USDCHF

• Price needs to remain below the resistance levels over head.
• For price to move lower, it has to close convincingly below the lowest of the H4 boxes high.

Possibility #2: Price turns up (H4R)

USDCHF charts possible reversal pattern on the D1 charts

• On the D1 charts, we can see a small IHS already formed and also a possibility of a large one.
• Ultimately price needs to clear the current resistance for it to have any chance to head higher up.

Jerome Lee

Last time, many things that I wanted were just dreams, now I see them as possibilities. I’m looking forward to own pent-house suite in Manhattan overlooking Central Park because forex trading with Tflow® makes it possible. Find me on Google+