FxWirePro: BCH/USD short opportunity

BCH/USD chart on Trading View used for analysis

• We see scope for a short trade in BCH/USD.
   
• Price has been rejected at strong resistance at 55-EMA on several occasions.
   
• We see upside only on breakout at 55-EMA (currently at 546).
   
• The pair has been grinding lower below 55-EMA from the past few sessions.
   
• Successive spinning top and Dojis at highs suggest lack of upside momentum.
   
• 21-EMA is currently offering support at 507 level. Break below will see further weakness.
   
• Scope for dip till 370 (trendline support). Bearish invalidation on 55-EMA breakout.

Support levels - 507 (21-EMA), 471 (Aug 14 low), 407 (Sept 17 low), 370 (major trendline)

Resistance levels - 525 (5-DMA), 545 (55-EMA), 587 (Sept 27 high)

Recommendation: Stay short at current level, SL: 550, TP: 500/ 470/ 400/ 370.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 62.7528 (Neutral) at 1045 GMT.

For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.