Five Of The Same Corrections In A Row

That situation does not happen too often and from my experience is rather reserved for the pairs with NZD, not CHF. USD/CHF in the recent after-Trump upswing was having four, almost identical corrections in a row! This is how the history likes to repeat itself in trading!

When trading corrections, we should obviously look first at the depth, not length and that is what we are focusing on here. Second one was a bit deeper and third one a bit smaller but the principle stays the same. What is more, we are now having chances for the 5th one! So far we retraced around 30 pips from the top and we are on a good way to reach an important support (green area).

Guess what, 65 pips mark (grey rectangle) is on the same level as the horizontal support created by the tops from the last four trading days (1.0122). Will the same story happen one more time? Well, with every next bounce, chances that it will be continued drop but it is still worth considering.

Trend here is definitely positive. Those corrections might be the great opportunity for the short term scalpers. Long-term traders also should focus on the long positions but they should not abandon their bullish view once the 5th correction will be a bit deeper.

USD/CHF H1 Chart

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