USDCHF MARKET ANALYSIS

 Hello traders, it's another day of the trading week in the financial markets and I am looking out for new opportunities into USDCHF. Price dropped from a major H1 & H4 supply zone at 0.86940 & 0.87330 to a key H1 & H4 demand zone at 0.85680 & 0.85340. Price broke below the key H1 & H4 demand zone and formed lower lows on H1 & H4 at 0.85160. I anticipate a potential retest of the broken demand zone as a new supply zone before a continuation of the prevailing bearish trend. Price formed a lower low during late NY session then retraced to 0.85250 then dropped back again and dropped back to the H1 & H4 lower low. I still anticipate a potential rally then retest of 0.85330 before a potential continuation of the drop lower.

Price consolidated below supply without forming any strong lower lows then retraced to retest supply at 0.85330 as previously anticipated before a continuation of the drop lower. Price formed a rejection wick on H1 & H4 with candle closes below supply followed by a strong bearish engulfing candle on H4 and constant push away from the zone confirming the bearish sentiment. Price dropped 55 pips and closed the trading week at 0.84778. I anticipate a continuation of the drop lower into the coming week and my target is at the next major daily demand zone at 0.84030 & 0.83620.

Price was in consolidation but my bias still remained the same and my target is at 0.84030 & 0.83620 which is the next major daily demand zone. Price has gained more momentum during NY session forming lower lows towards 0.84354 approaching the target zone. Price dropped 135 pips to 0.84033 missing the anticipated target by 3 pips from the major H4 & daily demand zone at 0.84030 & 0.83630. Price has filled the major H4 & daily range to the next major H4 & daily demand zone.