USD/CHF short setup as bears make traction in the major consolidation phase after breach below double top neckline in minor trend:
USDCHF bulls in minor trend seem to be sliding further after breaching below double top neckline & strong support of 1.0035 levels (refer daily charts ).
Consequently, the current price constantly slid below 7DMA, for now, the extension of slumps are on the cards as both leading and lagging indicators signal weakness.
The pair forms the double top pattern with top 1 at 1.0124, top 2 at 1.0119 and neckline at 1.0069 levels.
Both leading oscillators ( RSI & stochastic curves) show downward convergence to indicate intensified selling momentum.
On a broader perspective, the major trend is still stuck in the range, the stiff resistance levels are observed at 1.0099 areas, strong supports are observed at 0.9936 levels. In addition, shooting star pops-up at stiff resistance in the consolidation phase in the major downtrend (refer monthly charts).
RSI shows faded strength at 57 levels, while stochastic curves show %D crossover that indicates selling momentum.
Trade tips: On daily trading grounds, at spot reference: 0.9999 levels, we advocate buying tunnel options spread strategy, using upper strikes at 1.0015 and lower strikes at 0.9987 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 156 levels (which is bullish ), hourly USD spot index was at -66 ( bearish ), while articulating (at 11:58 GMT ).
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