FX.co ★ Zezooman10 | USD/CHF

Professional Technical Analysis – USD/CHF Inverted Head and Shoulders Pattern – A Strong Bullish Opportunity in the Making! On the 4-hour chart of the USD/CHF pair, a clear Inverted Head and Shoulders pattern has formed. This is one of the most powerful bullish reversal patterns in technical analysis and is often used to identify the end of a downtrend and the start of a new upward movement. Pattern Details: The pattern is currently well-structured with: A left shoulder at a local low. A head forming a deeper bottom at the center. A right shoulder near the level of the left one. A neckline positioned around 0.8250, acting as a critical resistance level. Expected Scenario: Traders are now watching for a 4-hour candle to close clearly above the neckline (0.8250) to confirm the breakout and the completion of the pattern. Once confirmed, this would signal a strong buying opportunity, with expectations of a potential bullish continuation. Buy Opportunity: The ideal entry would be upon a confirmed 4-hour candle close above 0.8250. This breakout should ideally be accompanied by increased volume to confirm the bullish momentum and reduce the risk of a false breakout. Target Levels: First target at 0.8290 – a near-term resistance and a suitable level for partial profit-taking. Second target at 0.8315 – aligns with the projected move equal to the distance between the head and neckline, offering the full technical target of the pattern. Stop-Loss Placement: A logical stop-loss would be just below the right shoulder, around 0.8220, to protect against false breakouts or sudden market fluctuations. Supporting Technical Indicators: The RSI is gradually rising, signaling building bullish momentum. The MACD shows a positive crossover, which supports the bullish outlook. Price is stabilizing above short-term moving averages, offering dynamic support and reinforcing the upward bias. Recommendations: Wait for a confirmed breakout above 0.8250 before entering a buy position. Monitor trading volume—strong volume adds credibility to the breakout. Consider splitting your position between the two targets to lock in profits and manage risk more effectively.