USDCHF Dips Strongly After Reaching a Climax

USDCHF Analysis – Price Dips Strongly After Reaching the 1.00600 Climax

USDCHF dips strongly after reaching a climax at 1.00600. The price broke out from a long-drawn consolidation on the 11th of April and skyrocketed by 7%, breaking several price barriers. However, after ascending to 1.00600, the price has exhausted all its strength, and the currency pair begins a swift decline. Several price levels have also been broken as the price dips to its current level at 0.95950.

USDCHF Major Levels

Resistance Levels: 1.00600, 0.97100
Support Levels: 0.93770, 0.95950
The market endeavours have been relatively straightforward. There was a long-drawn period of tapering consolidation in an ascending triangle formation. This consolidation stretches as far back as July 20th, 2020. The triangle pattern already predisposes the market to a bullish upsurge. This plays out as the price surges on the 11th of April. The breakout was strong with bullish candles.

The price rose 7% to reach the 1.00600 resistance level. A similar price surge in USDCHF is only matched by the one that happened on February 22, 2021, which occurred while the price was agitated during consolidation. Nevertheless, after the market rallies, it hits a stumbling block at 1.00600, which causes an instant price reversal. As a result, the market dips strongly from the resistance level.

Market Expectations

On the 4-hours chart, the price has touched down at the 0.95950 price level as the bulls are trying to defend the market. But it remains to be seen if the bulls will succeed in halting the drop in prices. On the daily chart, the MACD (Moving Average Convergence Divergence) line dips but hasn’t gotten to the zero level while plunged below it in the short time frame. In addition, the Parabolic SAR (Stop and Reverse) supports the bears. Buyers are much too weak, and the price will drop towards 0.93770.

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