A surprise from the CHF

Morning Dynamic Traders

Hope your having a great week, not long till the weekend!

The CHF had a surprising fall yesterday of roughly 300pips. Why? If you look at the day chart below you will see that price dropped to a S/R area that has been tested often in the past. With a bullish engulfing candle stick shortly afterwards price shot up.













Generally what goes straight up sometimes goes straight down. If you look at the candlestick that we have today on the day chart, it was red when I started my write up, but it has now turned green, which means that it might be finding support from somewhere. If you have a look at the 4 hour chart below you see that price climbed above the value index and took a short breather back towards the VI. It then used the VI to spring board up!













Price now has a tough RN to beat and if price can beat this RN we may see price climb further until it reaches the VI on the day chart!

I look forward to finding out tomorrow how price gets on today!

Happy Trading

Richard Monnery