Price Analysis – Break Out Imminent as USDCHF forms an Ascending Triangle Pattern
USDCHF forms an ascending triangle to push price out of consolidation. Bulls' attempt at redirecting the market has thus far hit a bulwark. The price sprang up after bears brought it down to 0.89300 resistance. Buyers pushed price up 3% in 3 days. However, after reaching the 0.92400 key level, the bears, freshly revitalized, entered a tussle to claim back the market.
USDCHF Significant Zones
Resistance Zones: 0.92000, 0.92400, 0.92700
Support Zones: 0.91650, 0.91300, 0.90780
The tussle for power has, however, seen USDCHF bounce down from 0.92400 and 0.92700 key resistances and bounce up from 0.91300 and 0.91650 key supports. This has led to the formation of an ascending triangle pattern. This will result in a breakout, either in favor of buyers or sellers. Bears will win the contest if they drag price below 0.91650 to confront the major support at 0.91300. Breaking down further will see USDCHF fall hard, even to reach 0.9000 support.
Buyers will win the contest if price moves above the 0.92000 key level and holds. Bulls can then push up above 0.92700 key resistance to reach 0.93200 major resistance for further bullish reactions. The Parabolic SAR (Stop and Reverse) has three dots below the daily candle to indicate the current bullish impulse. The Stochastic Oscillator also has its signal lines sloping upwards to confirm the ascending triangle formation. At midlevel, it indicates bullishness.
Price has bounced up again from 0.91650 and is battling to overcome the 0.9200 resistance on the four-hour chart. The Parabolic SAR will likely indicate a change in market direction when it overcomes this resistance. The Stochastic Oscillator also has its signal lines hovering above the oversold region.
Price could slump further if it doesn’t move up soon. Bulls are expected to leverage the closeness to the major support line at 0.91300 to push up and break out upwards. USDCHF is aiming for 0.92400.
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