USDCHF MARKET ANALYSIS

 Good morning traders, I hope you're all well and enjoying the volatility that's kicked in the markets this week as last week lacked good volume for profitable setups. Into the charts today I'm looking at USDCHF where price dropped into a key H1 & H4 demand zone at 0.88961 & 0.88714 which is the origin of the previous rally to the H1 supply zone at 0.89958 & 0.89724. Price has filled the H1 & H4 range from the key H1 & H4 demand zone to the H1 & H4 supply zone and back to the key H1 & H4 demand zone. Price dropped into demand and formed a rejection wick on H4 with candle closes inside demand. Took buy positions during London session open at 0.88738 with SL at 0.88538. Setup taken is a drop base rally, a reversal setup and my target is at the H1 & H4 supply zone at 0.89958 & 0.89724.

Price rallied to 0.88908 then left a strong H1 rejection wick to the upside followed by a drop lower hence putting my positions in drawdown. Took a scale-in buy position at 0.88664 with SL at 0.88538. Price faked out a break of the demand zone then formed a rejection wick followed by a strong H1 bullish engulfing candle showing validity of the demand zone. Price gained strong bullish momentum into the NY session rallying 60 pips out of demand in 3 strong bullish H1 candles to 0.89300 with candle close above demand confirming a shift in market structure to bullish. I anticipate price to form a higher low or a retest of demand before a continuation of the rally.