USDCHF Market Analysis – Cup and Handle Reversal Pattern
USDCHF has formed a cup and handle reversal pattern. This means that the bulls are set to end the reign of the bears and shoot the price back upwards. The bears had initially plunged the market. This can be seen in consecutive bearish candles aligning downwards from the 21st to the 30th of July 2020. Afterward, USDCHF fell into a range, primarily cranking between 0.92060 and 0.90370.
The tussle between sellers and buyers continued. This resulted in a pattern that sees a succession of bearish candlesticks promptly replaced by bullish candles in a circular form, forging a cup pattern. Sellers brought the market down once more to produce the handle. As a result, the bulls are now poised to drive the market exceedingly high.
USDCHF Key Zones
Resistance Zones: 0.94700, 0.92060, 0.90370
Support Zones: 0.89250, 0.88240, 0.87570
What to Expect After USDCHF Reversal Pattern
At the tip of the cup’s handle, the price has broken out, retesting the upper border of the handle. As at the time of writing, the market has formed a strong bullish candle. The Parabolic SAR (Stop and Reverse) indicator has aligned six dots below the candles. This shows a definite reversal in market movement.
The RSI (Relative Strength Index) also signifies bullish activities. Its signal line is facing upwards. At 44.67, it shows there is still much scope for more upward movement. The cup and handle reversal pattern is likely to take price beyond 0.90370 to 0.92060 and with bullish persistence also reach 0.94700.
On the 4-hour chart, the price broke out from the handle on the 28th of May 2021 with a big bullish Marabuzo candlestick. The price came back to retest the upper border of the handle on the 1st of June 2021. Subsequently, the market has been on an ascent.
The Parabolic SAR has aligned 6 dots bellows the candlesticks to show a definite reversal in price. The RSI has its signal line at 55.01 and looking up also confirming the reversal of the market upwards.
The market would reach 0.92060, only a strong bearish pressure can send USDCHF to 0.89250 or further to 0.88240 support, thereby delaying upwards momentum.
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.
Leave a Reply