USDCHF Analysis – Price Fails to Sustain Its Upward Movement
USDCHF fails to sustain its bullish momentum and falls sharply. The highest that price reached in its upward movement is just a little above 0.93350. Afterward, the market dropped back to the uptrend line. USDCHF faced the greatest test to sustain its upward movement at this point, just below 0.92740. A series of doji and spinning top candlesticks showing market indecisiveness was portrayed. This eventually led to the fall of the market.
USDCHF Key Levels
Resistance Levels: 0.93350, 0.92740, 0.92130
Support Levels: 0.91070, 0.90360, 0.89460
The market had surged up on the 16th of June after a period of consolidation between 0.90350 and 0.89460. By the time price got to 0.92130, buyers lost strength and the market started sliding down a channel, which is a trend continuation pattern. The 0.91070 support level remained impervious, which enabled the market to taper through a descending triangle and eventually break upward to continue its uptrend.
To sustain its uptrend, USDCHF made consecutive higher highs, but it didn't make clear-cut higher lows. Price eventually begins struggling around the 0.92740 key level, after which it makes a brief headway. This forges the market into a head-and-shoulders formation, which eventually plunged the market below the uptrend line. USDCHF, therefore, fails to sustain its uptrend and has also broken below the MA period 20 (Moving Average), which has been acting as support for the market all along.
The 4-hour chart shows the price fluctuating above the 0.92740 key level just before the market fell. At this point, the MA period 20 had been forced into a parallel movement, which shows a lack of upward momentum. Price eventually fails and falls below the trendline, trading below the 20-period moving average. The RSI (Relative Strength Index) has fallen to the oversold region and price could be set for short retribution before the market drops lower.
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