The USDCHF has fired off a bearish engulfing bar (BEEB) on the daily chart. This BEEB is engulfing only the last previous candle, but has formed after a large false break. Price at the start of this week moved lower after price formed a false break 2 bar reversal. This 2 bar reversal was making a false break of the recent key resistance level. Once price broke lower from the 2 bar it gained momentum and begun to move lower. Price is now stuck in the middle of the key resistance and the next support level and it is here that it has formed the BEEB.
If price can break the low of the BEEB and make a move lower, the near term support and next major level that price will have to test on the daily chart comes in around 0.9245. If price cannot break lower and makes a move higher, the same level that acted as resistance for the false break 2 bar reversal will be the next level for price to have to break through if it wants to move higher.
USDCHF DAILY CHART
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