USDCHF Major Forex Pair

I have been monitoring the USD/CHF forex pair on the weekly chart for the past week, focusing on the 0.5 Fibonacci level. Unfortunately, that level around 0.88000 did not hold. While there was some buying activity in that area, the news from the FOMC Press Conference introduced additional selling pressure.

Better Price Action on the Daily Chart

Now, on the daily chart, I have identified a zone where the 0.618 Fibonacci level aligns with the one from the weekly chart. The price is forming a falling wedge pattern, and the price action is slowing down, which is exactly what I like to see.

I like how this price action is developing on the daily chart. The weakness in price, as it approaches the demand zone, is ideal for a reversal setup. If the price continues to approach the demand zone in this manner, I will consider entering a buy trade once the price breaks out of the falling wedge pattern.

Price Action on the 8-Hour Chart

Given the aggressive bearish impulses in the lower time frames, I plan to enter on the break of the falling wedge pattern on the 8-hour chart. The ABC waves currently in play are showing signs of weakening compared to the preceding impulses. While the C wave is not confirmed yet, it looks promising. Additionally, I would like to see the C wave create a divergence on the Money Flow Index indicator for extra confirmation. 

An update will be given once we observe further price action unfolding at the end of the falling wedge pattern and within the demand area.

Update: Breakout, But No Momentum

The recent price movement indicated a breakout; however, there has been a notable lack of follow-through. Throughout the week, the price has shown consolidation and made attempts to increase, but the buying pressure for the USDCHF pair has not been sufficient to sustain upward momentum.