USDCHF Analysis – Price Bounces off the 0.91070 Support
USDCHF bounces off an impenetrable support level at 0.91070. Price has been trending downward since forging into a market reversal pattern. Hence, the market drops to 0.92190. A short spell ensued before the market plunged deeper to 0.91570. There was a pullback at this level, which enabled the price to also drill deeper to make a new low. However, at 0.91070, the market has been thoroughly defended and the price bounces off upward.
USDCHF Important Levels
Resistance Levels: 0.92190, 0.93350
Support Levels: 0.91070, 0.91570
USDCHF has been on a general uptrend despite the undulating and wavy nature of the market. Since the beginning of the year 2021, the lowest point price has dropped to 0.87730. Since then, there have been varying levels of highs reached, but the price has been making consistent higher lows. The next higher low was attained at 0.90350, followed by 0.91070. This is the trend followed by the market as USDCHF bounces off another higher low at 0.91070.
The 0.91570 price level has been rather impervious from the last time price dropped to the level. It helped in pushing the market up on the 13th of October. Now that market is plunging again, it is also acting at a rallying level for the bulls. Hence the MACD (Moving Average Convergence Divergence) shows that there is an upturn in the market as its lines have crossed upward. The Stochastic Oscillator lines can also be seen to bounce up from the oversold border.
The 4-hour chart shows the market's consolidation phase between the levels of 0.91570 and 0.91070 and then a break out to the upside. After the price bounces out, it is now trying to negotiate its way past the 0.92190 price level. The market is likely to retrace a little before it moves past the level as the Stochastic Oscillator has climbed high enough into the overbought region, signaling an imminent drop in the market.
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