ICmarkets

USD/CHF Price to hit the round number 0.9 for a second retest?

FX:USDCHF   U.S. Dollar/Swiss Franc
90 2 1
4hr TF.

The higher-timeframe picture resembles the following:

• Price is frustratingly consolidating above weekly demand at 0.85664-0.88124, and has been for several weeks now!

• Heavy buying into daily supply at 0.90372-0.90042 has been seen with the sellers beginning to show a little interest now. If we see a break above this area, a likely push up to oncoming daily supply above at 0.91556-0.90985 will possibly happen.

The wicks currently seen in the 4hr supply area at 0.90372-0.90148 were likely rejection wicks as a neat-looking bearish engulfing candle was later seen. However, these rejection wicks also, in our opinion consumed sellers too.

Price dropped from the aforementioned 4hr supply area to around the 0.90063 level, the buyers are presently showing interest here as they have pushed price once again up to the 4hr supply area just mentioned. We still believe price will decline to the round number 0.90000 for a second retest. Our reasoning behind this is because those wicks just mentioned above have likely consumed most of the sellers around the 4hr supply area as mentioned already (levels above), so this level is prone to a break north. However before pro money can do this, they will very likely need liquidity in the form of sell orders to buy into, and with the majority of the sellers already consumed around where price is currently trading at, the next best place on this timeframe is seen below at the round number (level above). Nonetheless, expect the round number level to see a small breach below thus allowing pro money to stop out any traders long with their stops too close, and trap any breakout sellers below. All of this will give pro money the needed liquidity (sell orders) to buy into.

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, and the round number 0.90000.
• No P.A confirmation buy orders (Red line) are seen in the current market environment.

• No pending sell orders (Green line) are seen in the current market environment.
• 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). P.A.C: No P.A confirmation buy orders seen in the current market environment.

• Areas to watch for sell orders: P.O: No pending sell orders seen in the current market environment. P.A.C No P.A confirmation sell orders seen in the current market environment.
pradafx
2 years ago
Thanks for the informative analysis
Reply
ICmarkets PRO
2 years ago
You're very welcome.
Reply
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