As the weekly chart below of USDCHF shows the price reached key resistance near the level 0.9950, which coincides with the trend line led from the top of November 2015.
Turning to the daily chart – it shows that in this area of resistance bearish pin bar was formed, which at this point on the chart indicates the possibility of returning to the declines. Potential entry into short positions may take place after breaking the minimum of pin bar and the stop loss in this case should be over the maximum. After breaking out we can also look for opportunities to enter on the lower time frames (M30 or H1) to tighten stop loss order and get a better risk/reward ratio.
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