Last week’s price moves on USDCHF developed in an interesting way. In one of my previous analyses, I mentioned two candles with bullish shadows on the dynamic support of the EMA 10/20 channel. In addition, it formed an inside bar formation.
Last week the mother’s candle maximum was gently broken, but by Friday all the profits had been given back and in addition, the inside bar was bottomed. Apart from the fact that the quotations formed a bearish inside bar, it also breaks the dynamic support.
Considering the above, it may now turn out that the quotations will continue to slide. The trend line extending from this year’s minima may provide the closest important support for this scenario. Alternatively, the bearish attitude will be questioned when the maximum of last week’s highs are broken.