USDCHF Price Action – Key Support Folds, Potential Role Reversal Setup | Oct 28

USDCHF – Breaks Key Support, Potential Role Reversal Setup (1hr)
After forming a mild bounce off the key support at 9475, the pair slammed right through it in one hour. What is interesting is the price action after the break.

Initially forming a bullish pin bar, the pair then reversed course and printed a bearish pin bar off the key support (now resistance). This may act as a role reversal setup so traders should watch for a potential trade.

My only gripe with this is how the pair has printed 7 of 8 bull closes since the drop on the 1hr chart. This isn’t what I’d call ‘typical’ for a corrective pullback, along with the wicks mostly on the downside.

So lesser risk than usual is what I’d advise should you short it. If we see aggressive selling from there, then 9400 would be under attack. A close back above here creates a potential false break scenario.

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I'm Chris Capre, Founder of 2ndSkiesForex. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action. As a teacher, my passion lies in showing you how to re-wire your brain for successful trading. Want to improve your edge right now? Visit my Price Action Course page.

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