USD/CHF - Bearish Reversal Anticipated from Key Resistance Level

The USD/CHF currency pair currently exhibits a Bearish Butterfly Harmonic Pattern. This pattern is significant as it is forming at a key resistance area, indicating a potential reversal in price action. The pattern's completion point, identified as Point D, aligns with a 61.8% Fibonacci retracement level, further reinforcing the likelihood of a bearish movement.

Potential Reversal Zone (PRZ):
Point D, also known as the Potential Reversal Zone (PRZ), is the critical area where we anticipate a reversal from the current uptrend. At this point, the confluence of the Bearish Butterfly Harmonic Pattern and the 61.8% Fibonacci level strengthens the probability of a significant bearish reversal.

Entry, Stop Loss, and Take Profit Levels:
To capitalize on the anticipated bearish movement, we recommend entering a short position at 0.90055. To manage risk effectively, a stop loss should be placed at 0.90175, slightly above the PRZ to allow for minor price fluctuations without triggering an early exit.

Take Profit Targets:
We have identified three take profit levels to gradually secure profits as the price moves in the anticipated bearish direction:

TP-1: 0.89935
TP-2: 0.89815
TP-3: 0.89695
These take-profit levels are strategically placed to capture gains at significant price points, providing a structured exit strategy to maximize profitability while managing risk.

Conclusion:
The formation of a Bearish Butterfly Harmonic Pattern at a key resistance area, coupled with the alignment of the 61.8% Fibonacci retracement level, suggests a high probability of a bearish reversal in the USD/CHF currency pair. By entering at 0.90055 with a stop loss at 0.90175 and targeting the specified take-profit levels, traders can effectively benefit from the expected downward movement.

Disclaimer:
This technical analysis report is provided for informational purposes only and should not be construed as financial advice. Traders are encouraged to conduct their own research and consider their risk tolerance before entering any trades.
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