ICmarkets

USD/CHF: Is showing some very interesting price action currently

FX:USDCHF   U.S. Dollar/Swiss Franc
35 0 2
Weekly Timeframe: At the time of writing, the weekly timeframe shows price is holding nicely within weekly supply at 0.94546-0.93081. Should this pair see a sell off, we can likely expect active buyers to come into the market around the weekly resistance flip level at 0.90927.

Daily timeframe: Consolidating price action is currently being seen on the daily timeframe between a daily decision-point level at 0.93019, and a daily supply area above at 0.94546-0.93702. Selling at the aforementioned weekly supply area looked like a fantastic opportunity to get into a long-term short position (assuming price could overcome the 0.90927 level); things did not look so good once we went down to the daily timeframe though, and spotted the very obvious-looking daily decision-point level (level above), since this level would (in our opinion) need to be consumed before lower prices are seen in the market.

4hr Timeframe: The current selling action seen on this chart looks pitiful considering price is currently trading within a weekly supply area at 0.94546-0.93081. What we are essentially seeing here on the 4hr timeframe is a magnified view of the daily consolidation area that is currently in place (for details see above). In our humble opinion, even though price is in fact dropping overall, it is not depicting any real selling strength.

Take a quick look at the pink trendline placed on the chart, this is not to show a downtrend as such, what it is, is an attempt to demonstrate that whilst price was dropping south, pro money were spiking prices north to collect any unfilled sell orders to continue selling (take note of the following consumption wicks: 0.93619/0.93717/0.93751), now with the sell orders above consumed, this likely leaves the path north clear for a future rally higher. Buying interest has only recently come into the market around the round number 0.93, and what a beautiful touch that was! This move filled our last take profit target (0.93051) from our short position taken at 0.93845. If follow-through buying continues, and the high marked with an arrow at 0.93619 gets consumed, we could very likely be seeing price rally all the way up to at least the round number 0.94.

If the above is indeed seen, we will very likely set a pending buy order around the round number 0.93, awaiting a possible retracement to fill any unfilled buy orders before continuing higher.

Pending orders/Price action confirmation levels:

• Areas to watch for buy orders: Pending orders: 0.92635 (Stop loss: 0.92410 Take profit levels(s): Dependent on how price approaches). Price action confirmation levels: No price action confirmation buy levels are seen in the current market environment.

• Areas to watch for sell orders: Pending orders: No pending sell orders are seen in the current market environment. Price action confirmation levels: No Price action confirmation sell levels are seen in the current market environment.

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