USD/CHF – Bearish Rejection at Key Resistance Zone

Wait 5 sec.

USD/CHF – Bearish Rejection at Key Resistance ZoneUSD/CHFOANDA:USDCHFSamirHosamAnalysis Summary ​USD/CHF has shown a strong impulsive move to the upside, but it is currently encountering significant friction at a critical psychological and technical resistance level. We are looking for a potential short-play based on the rejection of the 0.78000 handle. ​Technical Observations ​Resistance Zone: Price has pierced the 0.78000 – 0.78100 horizontal resistance area. This zone has historically acted as a "supply" region, and the current 4H candle is showing a long upper wick, indicating a sell-off and lack of follow-through from bulls. ​Price Action: After a sharp rally from the 0.76800 lows, the momentum is slowing down. The presence of a "Long-Legged Doji" or rejection candle near the red zone suggests that the market may be overextended in the short term. ​Risk/Reward: The setup offers a favorable Risk-to-Reward (R:R) ratio by placing the Stop Loss just above the recent swing high/resistance zone. ​Trade Execution Levels ​Entry Type: Sell Limit / Sell Market (on confirmation of 4H candle close below 0.77950) ​Entry Price: 0.77902 ​Stop Loss (SL): 0.78379 (Above the resistance zone to allow for "noise") ​Take Profit (TP): 0.77524 (Previous structural support/liquidity grab area) ​Risk Management ​Note: Always adjust your lot size according to your total equity. I am looking for a rejection here, but a clean break above 0.78400 would invalidate this bearish thesis. Keep an eye on the upcoming U.S. and Swiss economic data which could spark volatility. ​Trade Safe!