ICmarkets

USD/CHF: Technical outlook and review.

FX:USDCHF   U.S. Dollar/Swiss Franc
86 0 1
4hr TF.

The higher-timeframe picture resembles the following:

• Weekly timeframe: Price broke the mundane range that formed above weekly demand at 0.85664-0.88124. If the buying pressure continues, we will very likely see price hit an important weekly decision-point level at 0.90927.

• Daily timeframe: A break above daily supply at 0.90372-0.90042 was recently seen. It is very likely that the sellers are now consumed around the aforementioned daily supply area, thus clearing the path up to around the next daily supply area at 0.91556-0.90985. There is very little to left that we can see that will cause a problem to price if the buyers wanted to push it up that far. Notice the wicks seen in between these two areas? These wicks likely indicate supply consumption which makes the possibility of higher prices even stronger, but if pro money does not have the required liquidity, in this case sell orders to buy into, they will have to reverse price. We can see two obvious areas where they may reverse price to, a small daily demand area at 0.89973-0.89311 or the daily S/R flip level at 0.88608 below.

Some mean-looking bullish action has been recently seen, with the buyers showing no signs of stopping yet. It was expected that a reversal down to at least the 4hr decision-point level at 0.90215 before higher prices were seen may happen.

As pointed out on the chart there is very little to the far left on this timeframe we can see that will likely cause problems to the buyers from reaching the 4hr R/S flip level at 0.90891 since the majority of the supply appears to be consumed (take a look at all those wicks consuming sellers as price was dropping).

It will be very interesting to see what happens next, as we have both buy order set at the aforementioned 4hr decision-point level at 0.90233 below, and also sell order set just below the aforementioned 4hr R/S flip level at 0.90854.

Pending/P.A confirmation orders:

• Pending buy orders (Green line) are seen just above the round number 0.90000 at 0.90018. We would not normally set a pending buy order around a round number level such as this; however the first retest seen of this level gives us confidence to place an order such as this.
• Pending buy orders (Green line) are seen just above the decision-point level (0.89540-0.89614) at 0.89624. A pending buy order was placed here because this area remains an important decision-point area where the buyers ‘decided’ to trade above multiple highs to the left.
• Pending buy orders (Green line) are seen just above the decision-point level (0.90215) at 0.90233. The reasoning behind placing a pending buy order here is simply because this is the area on the 4hr timeframe where pro money buyers likely made the decision to break above the 4hr supply area at 0.90372-0.90148, hence the possibility there may still be unfilled buy orders lurking around this level.
• No P.A confirmation buy orders (Red line) are seen in the current market environment.

• New pending sell orders (Green line) are seen just below an R/S flip level (0.90891) at 0.90854. The reasoning behind setting a pending sell order here is simply because this level sits just below a nice-looking weekly decision-point level at 0.90927.
• No P.A confirmation sell orders (Red line) are seen in the current market environment.

• Areas to watch for buy orders: P.O: 0.89624 (SL: 0.89523 TP: Dependent on price approach) 0.90018 (SL: 0.89928 TP: Dependent on price approach) 0.90233 (SL: 0.90117 TP: Dependent on price approach). P.A.C: No P.A confirmation buy orders seen in the current market environment.

• Areas to watch for sell orders: P.O: 0.90854 (SL: 0.91072 TP: Dependent on price approach). P.A.C No P.A confirmation sell orders seen in the current market environment.
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