USDCHF recently broke above a previous resistance zone and showed a strong bullish impulse. Moves like this often need a pause, and the market now appears to be pulling back toward a key demand area.
For me, this pullback looks more like a healthy retracement rather than weakness. Markets rarely move in a straight line, they expand, retrace, and then decide the next direction based on reaction at important levels.
If the demand zone holds, the market could attempt another move toward the upside liquidity area. However, the reaction at support will be the key factor to watch.
At the moment, the focus is simple:
Observe how price behaves inside the demand zone.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Trading involves risk.
For me, this pullback looks more like a healthy retracement rather than weakness. Markets rarely move in a straight line, they expand, retrace, and then decide the next direction based on reaction at important levels.
If the demand zone holds, the market could attempt another move toward the upside liquidity area. However, the reaction at support will be the key factor to watch.
At the moment, the focus is simple:
Observe how price behaves inside the demand zone.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Trading involves risk.
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Disclaimer
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.