The USDCHF has fired off a bullish false break pin bar on the daily price action chart, rejecting a major support level.
Price in the very short term has been moving lower, but the overall price action has been stuck in a range and consolidation pattern which is obvious with a quick glance from left to right. As you can see on my daily charts below, price has fired off two large Bearish Engulfing Bars (BEEBs) which have both sent price lower into the major support level.
After moving into the support level, price bounced before making another re-test, where it has now formed the False Break Pin Bar Reversal. Price did make a really strong attempt at breaking the support level and continuing the short-term move lower.
After breaking below the support, price found buyers and snapped back lower to form a false break and pin bar reversal. Price also managed to close back above the support level – which is an important price action clue to keep an eye on.
As I discuss in the trading lesson ‘What Traders Can Learn From Candlesticks and Price Action’, where price closes and more to the point cannot close, is super important information – especially when it comes to really major support and resistance levels. We can learn a lot from watching where price closes around these major levels, and then looking to hunt trades on the intraday levels from quick pull-backs.
From here if price can break higher and continue the momentum of the false break pin bar there is a really close first resistance overhead to contend with. If price can break this, then there looks to be space for price to move into around the 0.9650 level.
If price can’t break higher, the major daily support level that the pin bar is making a false break through is the really vital level for this chart and the level that will decide where price goes. If price breaks and closes through, then a leg lower would look inevitable and we could start looking for short trades.
Daily USDCHF Chart – Price Action Trigger Signals
Daily USDCHF Chart – False Break Pin Bar
Daily USDCHF Chart – Close Above
Daily USDCHF Chart – Major Daily Support
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