Super strong bullish engulfing pattern on USDCHF

Aug 31, 2017

As we can observe on the daily chart, a super strong bullish engulfing pattern has formed. 1# candlestick is a dragonfly doji candlestick, with a very long lower shadow. 2# is a strong bullish candle, which confirms the strong dragonfly doji. This indicates, that a huge press from the buyers has emerged, in a short time.

This, combined witch the bullish trend and candlesticks on the longer time frames (weekly and monthly), makes it a strong long trade setup, according to my trading strategy.

Stoploss will be: 0.95520 (80 pips).

Target will be around the 61.80 % fibonacci retracement level and the resistance line, depends on the future movement of the price.