USDCHF MARKET ANALYSIS

Good morning traders, it's a chilly morning outside but it's hot inside the markets with plenty of market opportunities. Into the markets today I'm looking at USDCHF where price rallied into a key H1 & H4 supply zone at 0.88900 & 0.88600 which was the origin of the previous drop to the key H4 low at 0.87500. Price filled the major H4 range from the key H1 & H4 supply zone to the H4 low and back to the key H1 & H4 supply zone. Price rallied into the zone and formed a strong H4 bearish engulfing candle with candle closes below supply followed by a drop to the 1st H4 low at 0.88200. Price retraced to retest the key H1 & H4 supply zone at 0.88600 before a potential continuation of the drop. Took sell positions during NY session at 0.88650 with SL at 0.88850. Setup taken is a rally base drop, a reversal setup and my target is at the H4 low at 0.87700.

Price rallied deeper into supply putting my positions in drawdown but I held my positions. Price gained strong bearish momentum during NY session dropping in 3 strong H1 bearish candles to 0.88250 confirming the bearish sentiment. Price retraced to form a lower high at 0.88520 during Asian session before a potential continuation of the drop lower. I'm still holding my positions to the anticipated target at 0.87700.

Price retraced to 0.88550 during London session but formed candle closes below supply. Price consolidated at entry before gaining slight bearish momentum during NY session open. Price gained strong bearish momentum during NY session dropping 50 pips to 0.88145 and still showing more bearish potential. I anticipate a continuation of the drop lower to the H4 low at 0.87700. Price gained more bearish momentum taking out the H1 low at 0.88250 and forming new lows at 0.87950 confirming the shift in market structure to bearish. 

Price gained strong bearish momentum during NY session dropping 50 pips to 0.88145 and still showed more bearish potential. Price formed lower lows confirming a shift in market structure to bearish. Price gained more momentum during NY session forming lower lows in all bearish H4 candles. Price dropped 90 pips to 0.87700 which was my target. TP Hit.