USDCHF Analysis – Buyers Fail to Stabilize Above 1.00000 and the Price Drops
USDCHF buyers fail to finish up their work of violating the 1.00000 supply level. They failed to stabilize the market above it, and as a result, the currency pair has dropped back below the level. This renders all efforts to consistently push against the level ineffective. Currently, the market is slumping downward with consecutive bearish candlesticks.
USDCHF Critical Levels
Supply Zones: 1.01300, 1.00000, 0.98580
Demand Zones: 0.96690, 0.95300, 0.93770
After several trials, USDCHF was unable to breach the 1.00000 key level, and there was a lack of bullish momentum in the market. However, the buyer persisted and decided to structure the market into a slanting double-bottom bullish formation. This was very helpful for the market, and after rising past its neckline, the price kept pushing against the 1.00000 supply till it broke through it.
The 1.00600 key level, which is an extension of the influence of the 1.00000, was also broken. However, by this time, the bulls have expanded their strength in trying to get above the supply level. As a result, the market fails to establish itself above the supply level and begins a swift slump back below it. The RSI (Relative Strength Index) line, which hitherto was majorly above the middle line, has crashed towards the oversold border.
Both on the daily chart and the 4-hour chart, the EMA period 25 (Exponential Moving Average) has been crossed to the downside as the sellers freely plunder the market. The RSI line has also dropped into the oversold region already on the 4-hour chart as the price lands on 0.96690. This may signal some form of reprieve for the buyers, and the bulls will try to revive and kick back upwards from here. If that is the case, the pair will likely rise to test the 0.98580 level.
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