USD/CHF: Technical outlook and review.
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).
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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