Negative divergence and inverted hammer signaling downside risks for USDCHF

  • USDCHF has formed an inverted hammer supported with a negative divergence pattern, suggesting that further upside is limited and risks or skewed toward the downside
  • Furthermore, USDCHF is hovering around parity and is facing significant upside resistance among a rising risk-off sentiment
  • Trade idea: Outright short position in USDCHF with TP: 0.9870 and SL: above trend resistance