Simple's Green Room

[pennies2007]

USD/CHF Daily and 4 Hour Charts Study

The long term charts here are finally showing some signs of a bottom, at least for now. The daily chart shows that we've completed a bullish falling wedge pattern. There's also a good 5 wave count within this series of waves, showing completion.
The divergence on the indicator agrees with this view. Lower lows on price, higher lows on the TDI means that most of the selling pressure has subsided here.
When we go back to the 4 hour chart, we can see a well-defined inverted head and shoulders pattern. This pattern is completed or very nearly completed.

As a result, I'm easing into long positions here. Minimum TP based on a breakout of the IHS pattern is 0.8780 although a drive towards the daily MA100 is more likely. That target is just above 0.88.

One final note...I would expect that this move up on USD/CHF is going to be accompanied by a rather nasty drop in US equities.

Daily and 4 hour charts below...