USDCHF MARKET ANALYSIS

 Good evening traders, it's an amazing Wednesday and I hope you've had the opportunity to capitalize on market movements for the week. Into the markets, I've been looking at USDCHF where price broke below a key H1 & H4 demand zone at 0.82390 & 0.82000 and formed lower lows on H4 at 0.81700. Price retraced to retest the broken demand as a new demand at 0.82390 before a potential continuation of the drop lower. Price formed rejection wicks with candle closes inside supply followed by a strong H4 bearish engulfing candle. Price gained more bearish momentum during NY session by a constant push away from supply and formed candle closes below supply confirming the bearish sentiment. Took sell positions during NY session at 0.82320 with SL at 0.82520. Setup taken is a drop base drop, a continuation setup and my target is at the next major H4 & daily demand zone at 0.80850.

Price dropped 60 pips to the 1st H4 low at 0.81730 confirming the bearish sentiment. Price failed to break the H4 low and instead retraced back to the zone for a retest before a potential continuation of the drop lower. I anticipate a potential continuation of the drop lower and my target is at the next key H4 demand zone at 0.80850.