usd/chf , forming good selling technical setup with decent risk-reward (15th October, 2022)

attached is the daily chart of the pair USD/CHF.

Technical View : 

usd/chf has been in an uptrend (relatively slower than other usd pairs) & has been working inside the box range between 1.00700-.95000 since may 2022 evident by the 50 dma that has been smoothing around the congestion area.

The recent price activity has been working inside the rising wedge & meeting the resistance line (red horizontal) creating the confluence area & raises the probability of some correction in the pair.

Two trend support lines can be seen, yellow being the shorter term & violet being the medium term can be the targets if the pair corrects from current levels.

In the lower panel Rsi can be seen creating the negative divergence confirming the short to medium term correction in the pair.

*** usd/chf correcting to down side will be beneficial for eur/usd (almost perfect negative correlation)in the short run ***

Plan : looking to sell the pair between 1.00700-1.01250 for the target of 0.97000 & 0.95000 in extension.

risk reward should be 120 pips stop loss & 400 pips profit.

Thank you,

Sanjay Galani, CMT, CFTe

Investment Director,

Uma Network LTD.