USDCHF Analysis – The Market Begins a New Consolidation Session
USDCHF begins a new consolidation session above the 0.95950 significant level. The latest activity in the market sees the bulls charge upward for the second time in the space of a month with consecutive bullish candles. However, a bearish engulfment candlestick pattern shows that the currency pair gets rejected again. This leads to a plunge back to the strong support level at 0.95950. The price is preparing for another assault upward.
USDCHF Significant Levels
Resistance Levels: 1.00600, 0.97100
Support Levels: 0.95950, 0.93770
This can be seen as the market formulates into a consolidation structure. The key level of 0.95950 remains a solid support after it was once breached to the upside on the 26th of April. The 1.00600 significant level has constituted itself as a resistance to the market as it rejects the upward movement in the market for the second time in a month. The price is back at the support level.
Early indications are that the consolidation movement will continue as the price accumulates at the support level. A bullish candle is now being formed. The MA period 70 (Moving Average) solidifies the 0.95950 support level. The EFI (Elders Force Index) power line, which has fallen deep below the zero level, has now made a sharp turn upward and is approaching the zero level.
The 4-hour chart confirms that accumulation has begun at the 0.95950 support level, with 0.91700 acting as a temporary resistance. This activity is now indulging the bulls back into the market frame. This can be seen as the EFI power line has risen to zero in the short time frame. The price is set to shoot upward again, trading above the MA period 70 and aiming for 1.00600.
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