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FxWirePro: Flurry of bearish patterns hamper USD/CHF minor uptrend, inverted head and shoulder pattern stimulates consolidation phase

USDCHF bulls, on intermediary terms, seem to be struggling to get bullish momentum. 

The pair forms inverted head and shoulder pattern on weekly terms, with the head at 0.9187, shoulder 1 at 0.9420 and shoulder 2 at 0.9542 levels.

On the daily chart, back-to-back shooting star, hanging man and bearish engulfing patterns have occurred at peaks of rallies (see circular area) to nudge prices below 7DMAs, on the contrary, dragonfly doji patterns have occurred at 1.0009 levels testing the support at 21-DMAs, consequently, bulls attempt to bounce back. For now, more slumps likely on intensified selling momentum & bearish crossover.

On a broader perspective, the major trend is still stuck in the range, the stiff resistance levels are observed at 1.0006 areas. Inverted head and shoulder pattern chart evidence upswings, but the overbought pressure on daily terms shown by momentum oscillators hamper interim buying sentiments while shooting stars & hanging man patterns pop at 1.0053 and 0.9996 levels that counter previous buying sentiments.

RSI shows faded strength at 69 levels, while stochastic curves show %D crossover that indicates selling momentum.

Trade tips: On trading grounds, at spot reference: 1.0010 levels, we advocate buying boundary options strategy, using upper strikes at 1.0025 and lower strikes at 0.9980 levels. The strategy is likely to fetch leveraged yields as long as the underlying price remains between above strikes on the expiration.

Currency Strength Index: FxWirePro's hourly CHF spot index is inching towards 100 levels (which is bullish), hourly USD spot index was at 35 (mildly bullish) while articulating (at 10:47 GMT). 

For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex

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