The USDCHF has moved lower after forming a bearish engulfing bar (BEEB) on the daily price action chart. This BEEB was covered live in this blog last week and you can view the original post HERE. After breaking the low of the BEEB price did not break straight down to the next support, but instead it hung around and and formed two indecision candles.
At the start of the week at Mondays opening session price opened with a large gap down to the key support level that had been identified as the next logical support level for this pair if price could move lower. Since price has move lower into this support level it has bounced higher and at the time of writing it is now sitting back at the low of the BEEB.
Price is in a clear sideways range in this pair and the best play for traders may now be to sit on the sidelines until price makes a clear break either higher or lower. Making trades in these tight ranges can be dangerous as price can flip and whipsaw from the most minor support and resistance levels quickly stopping traders out.
USDCHF DAILY CHART
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