USDCHF Buying Momentum Declines as Price Enters Premium Zone

USDCHF Analysis – Price Sets to Decline as Buyers Exit the Market

USDCHF buying momentum declines as the price enters the premium zone. USDCHF experienced a short-term consolidation as the price struggled to break beyond the 0.91130 swing high. The market is already in an overbought state, as indicated by the RSI (Relative Strength Index). This implies that a bearish move is impending, thereby leading to the continuation of the overall bearish trend.

USDCHF Key Levels

Resistance Levels: 0.92450, 0.94240
Support Levels: 0.83320, 0.80010 
Following the consolidation of the 0.92450 price level, USDCHF surged upward until it hit the 0.94240 resistance. The notable consolidation of the 0.92450 price level was a result of the significance of the price level. The bulls struggled to keep the price higher until the market got overwhelmed by the selling pressure in the premium zone. As the price crashed afterward, a bearish order block formed at 0.92450. The crash continued until a weak low formed at 0.88200.
 
The formation of the weak low at 0.88200 was followed by the formation of a weak high at 0.91130. A major low eventually formed at 0.85520 after the invalidation of the 0.88200 weak low. The price rallied afterward, pulling back to grab the buy-side liquidity above the 0.91130 high. The bearish trend resumed after a tap into the bearish order block at 0.92450. Apparently, the market order flow remains bearish, with the price repeating the same pattern. 

Market Expectation

A double bottom pattern formed at 0.90000 as the price rallied upward. As suggested by the RSI, a bearish trend is imminent from the premium zone as the market is almost overbought. The bearish trend is expected to invalidate the low of the double bottoms at 0.90000.

Note: Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results