On the USDCHF pair (dollar to Swiss franc), yesterday’s daily candle engulfed the Tuesday candle, creating the Price Action (Outside Bar) formations. On the daily chart there is an bullish divergence which, in accordance with the PA+MACD strategy, supports the possibility of breaking the pattern thru the top.
It is also worth noting the situation at the beginning of March when the breakout from the Inside Bar took place in accordance with the then ongoing downward divergence, which would indicate that the PA rules were respected by this pair in the past.
On chart H4 (above) we can additionally state that the lower boundary of Outside Bara is at the same level as important S/R level. Taking into account the factors mentioned above, the probability of breaking the top is high. The range of such movement is 0.9900 level, where the nearest supply zone from D1 is located.
