USDCHF: Potential Head and Shoulders Formation

Market seems to have created the third touch after after an impulse downwards, followed by a correction phase, and a vicious reversal to the top of the structure. What can be seen here is a potential head and shoulders pattern forming.

In the 1 hour chart, an evening star could be seen formed, which ticks off another box for the market to impulse downwards.

In the daily chart, it looks more likely that the market could just be going through a correction phase before actually impulsing upwards as part of the correction phase.

Steps To Take

• Wait for a bear flag to present an opportunity to buy
  
• Wait for the formation of the head and shoulders pattern
  
• Be prepared for a reversal if an opportunity to sell appears