Market Analysis – USDCHF Is Set-up for Bulls to Retain Power
USDCHF bulls retain the upper hand in the scuffle for control of the market. The 0.91300 key level has been working to promote the activities of the bulls. With every passing day, the market has been steadily making lower highs while they retain a consistent low on the 0.91300 support. It was not until the 28th of July that the support gave way after much pressure from above, and that was the only time the support was breached in 70 days.
USDCHF Key Zones
Resistance Zones: 0.92000, 0.92400
Support Zones: 0.90780, 0.9000
When the market dropped beyond the 0.91300 support, it fell directly to the lower border of its symmetric triangle. On its way up, it met resistance at the 0.90780 key level. This level, as well as the 0.9000 key level, has previously been seen to oppose the market upward movement. Bulls, however, retain their momentum and, after some days of perseverance, USDCHF surged up directly to the 0.91300 support.
The moment of price was so much that, in the same breath, it tried to break through the triangle formation. But bulls became starved of pushing force outside the triangle, and the market was rejected at 0.92400. Price then slumped back into the triangle. The 0.91300 was, however, at hand to keep defend the market and price has returned to undulating between the key level and the upper border of the triangle, looking for a weak point to push up.
USDCHF has once again hit the underside of the upper border of the triangle and is falling. It is expected that 0.91300 will be ready to keep the market up in the case of another setback. The RSI (Relative Strength Index) can be seen moving around the 50 mark with the signal line swaying even more to the buying half. This indicates more bias for the bulls. The Moving Average Convergence Divergence (MACD) also presents the same scenario with the EMA lines currently climbing above the zero mark. Furthermore, bulls can always rely on the 0.91300 support to keep the price from falling below.
If price successfully breaks through the upper border, bulls will push through to also break the 0.92400 where it was once rejected.
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