It appears we have a hidden bearish divergence setup in EUR/CHF as the market trades lower highs in conjunction with higher highs on the stochastics.
Again, we do not use divergences as our sole trading signal, so we will wait until the pair trades back into the channel drawn on the chart and below the current bar’s low at 1.6376.
Hopefully we will do well with this trade as we are trading with the current trend on the 4 hour chart and the risk averse sentiment currently in the markets.
Short EUR/CHF at 1.6370, stop at 1.6420, pt1 at 1.6350, pt2 at 1.6300
Remember to never risk more than 1% of your account an any single trade. Adjust position sizes accordingly.
Stay tuned for adjustments and updates. If the pair breaks above the previous highs we will take a longer term bullish position. Good luck!
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