USDCHF Analysis – Buyers are Eyeing a Breakout
USDCHF pair is witnessing a battle between buyers and bears, with the buyers refusing to give up despite the bears exerting selling pressure. In recent times, the bears have demonstrated a strong intention to push the price lower. However, the bulls have managed to maintain a strong trend for about three weeks now.
USDCHF Key Levels
Resistance Levels: 0.91920, 0.88830
Support Levels: 0.85150, 0.83350
This effort was seen after they picked up strength towards the end of December. The bearish trend had dominated the market throughout the last quarter of the year. Then the sellers gradually broke down the price from the significant level of 0.91920. As we approached the end of December, the bears encountered resistance as buyers entered the scene.
Around the 0.83350 price zone, the buyers began their pursuit, pushing the price higher. However, this week, the bulls showed weakness around the 0.87220 price zone. This, however, allowed the sellers to take advantage of the situation. Despite this, the buyers are suddenly on the verge of recovery.
The current market phase still indicates significant volatility and a larger spread is yet to be seen on the daily chart. The buyers are still struggling to regain momentum, as observed on the Stochastic Oscillator, a momentum indicator. Traders need to exercise caution and take a slow break as the buyers approach the 0.83350 price level. It is likely to be a crucial point for either a breakthrough by the buyers or a U-turn towards selling. Therefore, it is important to rely on accurate forex signals before jumping to any conclusions.
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