USDCHF Analysis – Price Defies Downtrend by Means of a Descending Triangle
USDCHF defies the bearish pull on the market to break out upwards. The 0.91070 support level stood strong to prevent the market from dropping below it. This made the price taper between the upper border of the descending channel and the 0.91070 support, forming a triangle pattern. This led to price accumulation, which resulted in a break out to the upside of the triangle and the upper border of the descending trend line.
USDCHF Critical Zones
Resistance Levels: 0.92740, 0.93770
Support Levels: 0.92000, 0.91070
Bears have been acting on the market since the price surged up to the 0.92740 resistance level on July 1st, 2021. The market embarked on a gradual slide by means of a descending channel. The 0.92000 tried to keep the price afloat, but a down surge defies it on the 8th of July 2021. After a while, bears then pushed further downward in which the market broke past the lower border and 0.91070, but the price recovered above 0.91070.
The price continued tapering down till it broke out to the upside and defies the channel. After retesting the upper border of the channel twice, it climbed higher and also defiles the 0.92740 key level. However, USDCHF weakened and dropped below. Currently, the market has now bounced off the EMA period 20 (Exponential Moving Average) but it is finding it difficult to defile the 0.92740 resistance again.
USDCHF is seen to be making consistent progress upward, displaying progressive higher highs and higher lows. This continued till the price ascended above 0.92740, only to be knocked down around the 0.93240 level. The market has found it difficult since then to rise above 0.92740 again. The Relative Strength Index has now dropped below the zero level with its tip going parallel. This suggests that we could be in for a short period of consolidation before between 0.92740 and 0.92000.
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