USDCHF Analysis – The Market Finally Breaks Out of Its Triangle Formation
USDCHF finally breaks out of its triangle formation after several days of tapering through its triangle pattern. The false breakout on the 11th of March 2022 already signifies the bullish agitations in the market. However, the price would fall short at 0.94640 and drop right into the triangle pattern. The lower border of the triangle, which coincides with the 0.91870 support level, acted as a springboard from which the market finally breaks out.
USDCHF Significant Levels
Resistance Levels: 0.96760, 0.94640
Support Levels: 0.87640, 0.92570
The market began its tapering movement after it was confined between the critical levels of 0.94640 as resistance and 0.87640 as support. After that, a consistent higher low and lower high sees the price taper through a triangle pattern. The 0.92570, a critical psychological zone, acted more as a barrier than as support. It confined the market to a double bottom formation, from which it had a false breakout.
After that, the price dropped back into the triangle at a strong confluence of the lower boundary of the pattern and the 0.91870 support level. The market sprang up from this point and finally breaks the triangle. A retest of the upper border confirms a breakout before the price surges further. The MA period 24 (Moving Average) acts as solid support to push the price up.
After breaking out, the market drops for a retest of the upper border before surging higher. Having broken a new price level at 0.94640, the price is pulling back for a retest before further upward movement. The MA period 24 remains below the 4-hour candles for support. While the RSI (Relative Strength Index) line has dropped from the overbought region as the price pulls back, USDCHF will now aim for 0.96760.
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