USDCHF Daily Forecast ✍️📈

Boom FX Analysis – USD/CHF (Daily Chart)

Date: December 22, 2024
Key Principles: Simplicity, Experience, Knowledge

Market Overview:

The USD/CHF pair is currently displaying a significant bearish bias, following a strong upward correction. The price has tapped into a daily supply zone (highlighted in red), which aligns with a bearish order block (OB) near the 0.9150 level. The market structure has shifted multiple times, providing clear Break of Structure (BOS) and Market Structure Shifts (MSS) signals.

• Liquidity Targets:
  • Buy Side Liquidity (BSL) has been cleared as the price pushed upward into the supply zone.
  • Sell Side Liquidity (SSL) rests at lower levels, around the 0.8500 region.
• Trendline Liquidity: The ascending trendline suggests a liquidity grab before further bearish movement.

Key Zones to Watch:

1. Supply Zone (0.9150–0.9050):
   • The price has respected this area and rejected it. A strong bearish confirmation could follow.
2. Demand Zone (0.8500–0.8400):
   • This zone remains a significant target for sellers, representing a potential reversal point or long-term buy opportunity.

Trade Setup Idea:

Bearish Continuation Setup

• Entry: Consider short positions near 0.9100–0.9150 (order block rejection).
• Stop Loss: Place stops above 0.9200, accounting for potential wicks into the supply zone.
• Take Profit 1: Target 0.8800, near intermediate support.
• Take Profit 2: Target 0.8500, aligning with the demand zone and SSL clearance.
• Risk-to-Reward (R:R): Aim for a minimum R:R of 1:3 for this setup.

Alternative Bullish Scenario:

If the price invalidates the supply zone and breaks above 0.9200 with strong momentum, anticipate a potential reversal to test the 0.9300–0.9350 resistance area.

Introductory Note:

The USD/CHF pair is a key reflection of risk sentiment and dollar strength. As we approach the year-end, anticipate potential volatility due to thin liquidity and macroeconomic updates. Traders should remain cautious and confirm entries with additional confluences such as candlestick patterns or lower timeframe confirmations.