ICmarkets

USD/CHF: Technical outlook and review.

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

The higher-timeframe picture resembles the following:

• Weekly TF: Price is still seen dancing around the weekly decision-point level at 0.90927 and has been for three weeks now. A push south could see a touch of weekly demand at 0.85664-0.88124, likewise a push above could see price testing weekly supply at 0.94546-0.93081.

• Daily TF: At the time of writing, price is still trading within a daily range. Daily supply is seen above at 0.91556-0.90985 and a daily S/D flip area below at 0.90372-0.90042 with price for the time being trading around the lower limits of this daily range.

Our active long position (0.90233) set just above the 4hr decision-point level at 0.90215 seems to be doing well for the moment. The market opened a little higher than Friday’s close (0.90172) at 0.90258, and has largely remained bullish . We see very little to the left stopping price on the 4hr timeframe from reaching the first take-profit level set at 0.90621.

However, traders who took the same long position would be wise to watch price action carefully, since we are still trading around a weekly decision-point level at 0.90927 meaning a bearish reversal could be seen at any moment. The thing we have supporting this trade is we are currently trading around daily demand at 0.90372-0.90042, but as most already know, higher timeframes usually overrule the lower!

Pending/P.A confirmation levels:

• The pending buy order (Green line) set just above the decision-point level (0.90215) at 0.90233 is now active, so do keep an eye on our first take-profit target set at 0.90621.
• P.A confirmation buy levels (Red line) are seen just above the round number 0.9 at 0.90026. The reasoning behind not placing a pending buy order right away is simply because this level could see a deep test, or even worse, be completely ignored!

• P.A confirmation sell levels (Red line) are seen just below 4hr supply (0.91329-0.91141) at 0.91112. The reasoning behind setting a P.A confirmation sell order here is because price has already visited this area once already, this likely means some of the sellers have already been consumed, so a push higher may well be seen into the 4hr supply area, or even a break above, hence the need for confirmation here.
• Pending sell orders (Green line) are seen just below the round number 0.91 at 0.90975. Our reasoning behind setting a pending sell order here is because the sellers previously consumed most of the buyers around the low marked with a green flag at 0.90553, likely indicating the path south is clear, thus we have now placed a pending sell order awaiting a possible return.

• Areas to watch for buy orders: P.O: 0.90233 (Active) (SL: 0.90117 TP: 0.90621 – May be subject to change). P.A.C: 0.90026 (SL: Dependent on price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed).

• Areas to watch for sell orders: P.O: 0.90975 (SL: 0.91355 TP: Dependent on how price approaches) P.A.C: 0.91112 (SL: Dependent on price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed).
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