USD/CHF 4-Hour Timeframe Analysis
The USD/CHF pair is exhibiting strong indications of potential bearish momentum following a rejection at a major key resistance level. After forming a double top at 0.92000, the price has consistently produced a sequence of lower highs (LH) and lower lows (LL), confirming a bearish market structure. During this downtrend, we have identified significant minor and major key levels that are likely to influence future price movements.
A critical area of interest is the 0.90100 level, which previously served as minor support. The price recently broke below this level, facilitating the accumulation of a substantial volume of seller orders, eventually driving the price down to the next minor key support at 0.89000. Despite reaching this support, we anticipate a liquidity hunt where the price may temporarily retrace to capture stop-losses within the liquidity zone before resuming its downward trajectory.
Our strategy involves waiting for the price to execute a liquidity hunt, targeting stop-losses placed by large-volume sellers within the identified liquidity zone. Once this liquidity grab occurs, we will await a confirmed 4-hour candle close below the minor key level before initiating a sell order. We have set a sell limit at 0.90070, with a stop-loss (SL) positioned at 0.90810 and a take-profit (TP) at 0.88920, aligning with the next significant support level.
Fundamental Insight:
Recent macroeconomic data adds further weight to our technical analysis:
SNB Policy Outlook: Any indications of a hawkish stance or reduced likelihood of rate cuts from the Swiss National Bank (SNB) could strengthen the CHF, reinforcing the bearish outlook for USD/CHF.
US Economic Data: Soft U.S. economic indicators, including weaker-than-expected employment figures or declining inflation, may exert downward pressure on the USD, further supporting our bearish bias.
Market Sentiment: Heightened global uncertainty may increase demand for the Swiss Franc as a safe-haven asset, adding further downside potential for the USD/CHF pair.
Market Outlook:
Considering the confluence of technical patterns and fundamental drivers, we maintain a bearish outlook on USD/CHF. However, it is imperative to confirm the anticipated liquidity grab and observe a 4-hour candle close before proceeding with trade execution.
Trade Parameters:
Entry: Sell limit at 0.90070
Stop Loss: 0.90810 (above the recent lower high)
Take Profit: 0.88920 (next minor key support level)
📌 Disclaimer:
This analysis is for informational and educational purposes only and should not be considered financial advice. Trading involves substantial risk, and past performance is not indicative of future results. Always conduct your own research and consult with a financial professional before making any investment decisions.
The USD/CHF pair is exhibiting strong indications of potential bearish momentum following a rejection at a major key resistance level. After forming a double top at 0.92000, the price has consistently produced a sequence of lower highs (LH) and lower lows (LL), confirming a bearish market structure. During this downtrend, we have identified significant minor and major key levels that are likely to influence future price movements.
A critical area of interest is the 0.90100 level, which previously served as minor support. The price recently broke below this level, facilitating the accumulation of a substantial volume of seller orders, eventually driving the price down to the next minor key support at 0.89000. Despite reaching this support, we anticipate a liquidity hunt where the price may temporarily retrace to capture stop-losses within the liquidity zone before resuming its downward trajectory.
Our strategy involves waiting for the price to execute a liquidity hunt, targeting stop-losses placed by large-volume sellers within the identified liquidity zone. Once this liquidity grab occurs, we will await a confirmed 4-hour candle close below the minor key level before initiating a sell order. We have set a sell limit at 0.90070, with a stop-loss (SL) positioned at 0.90810 and a take-profit (TP) at 0.88920, aligning with the next significant support level.
Fundamental Insight:
Recent macroeconomic data adds further weight to our technical analysis:
SNB Policy Outlook: Any indications of a hawkish stance or reduced likelihood of rate cuts from the Swiss National Bank (SNB) could strengthen the CHF, reinforcing the bearish outlook for USD/CHF.
US Economic Data: Soft U.S. economic indicators, including weaker-than-expected employment figures or declining inflation, may exert downward pressure on the USD, further supporting our bearish bias.
Market Sentiment: Heightened global uncertainty may increase demand for the Swiss Franc as a safe-haven asset, adding further downside potential for the USD/CHF pair.
Market Outlook:
Considering the confluence of technical patterns and fundamental drivers, we maintain a bearish outlook on USD/CHF. However, it is imperative to confirm the anticipated liquidity grab and observe a 4-hour candle close before proceeding with trade execution.
Trade Parameters:
Entry: Sell limit at 0.90070
Stop Loss: 0.90810 (above the recent lower high)
Take Profit: 0.88920 (next minor key support level)
📌 Disclaimer:
This analysis is for informational and educational purposes only and should not be considered financial advice. Trading involves substantial risk, and past performance is not indicative of future results. Always conduct your own research and consult with a financial professional before making any investment decisions.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.