USDCHF breaking clean above 0.8280, are we really heading straight for 0.8400?

[Robert Chen]

Hey guys, was charting USDCHF this morning and noticed that solid push right through the 0.8280 resistance level. That area capped the September impulse and intersects right with the daily ascending channel from August, so seeing price punch through it with decent volume definitely caught my attention.

Ngl, looking at the order flow, it feels like momentum traders are jumping in heavy, and the wave structure seems to point toward 0.8400 next. But I'm a bit hesitant to fomo in up here. I'm wondering if we get a swift liquidity sweep back to retest 0.8280 as new support, or if the dollar strength just carries this straight into the next major resistance block without looking back.

How are you guys playing this breakout, waiting for the retest or chasing the continuation move up to 0.8400?

 

[Zakami Ng]

Man I wouldn't count on 0.8400 just yet, especially looking at the daily chart. RSI is showing some pretty nasty bearish divergence right as it tries to punch through that 0.8280 level. Plus if you check the MACD, the histogram is starting to lose steam even with this green candle. Might just be a fakeout to grab liquidity before heading back down.