False breakout in the Swissy?

The USDCHF is at risk of a false breakout. The move above the .9150 is quickly reversing today as the sentiment was about as bearish we have seen in recent years (Daily Sentiment Index was at 5 on Wednesday). Price has moved far enough higher to squeeze shorts out of the market and entice new long trades. A close back below .9150 should target the 200dma or previous channel support near the .8970 level. Also, the weekly candle would show a false breakout (tomorrow) as well.

Blake Morrow

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Steve Voulgaridis