USDCHF 4H Signal: Rejection Near 0.7850 Resistance
Analysis:
USDCHF on the 4-hour timeframe recently produced a strong bullish impulse after bouncing from the 0.7680 demand zone, forming a Change of Character (CHoCH) and pushing price toward the 0.7850 resistance region. This move temporarily shifted the short-term momentum to the upside.
However, the rally stalled near 0.7850, where the market created a weak high and entered a consolidation phase. This level represents a key liquidity area where sellers previously entered the market. The inability of price to continue higher suggests that the bullish momentum may be fading.
Currently, price is hovering around 0.7775, which sits between the upper supply zone near 0.7830–0.7850 and the lower demand zone around 0.7680–0.7700. This positioning indicates that the market is likely preparing for its next directional move after absorbing liquidity within this range.
If price remains below 0.7850, the probability increases for a corrective move toward the lower demand zone. The next downside liquidity targets sit near 0.7720, followed by 0.7680, where the previous strong low was formed.
Trade Setup:
Enter: Sell below 0.7790
Stop-Loss (SL): 0.7860
Target A: 0.7720
Target B: 0.7680
