Market Analysis – USDCHF Is Set Up to Reappraise 0.90500
USDCHF is set to reappraise 0.90500 supply after initial failure. Buyers have created a double-bottom reversal pattern to aid their bullish intention. The market had posed a 6-year low of 0.87600 earlier in the year on the 6th of January 2021. Since then, the buyers have been working hard to lift the market.
USDCHF had initially failed spectacularly at the 0.90500 resistance on the 4th of February, but when the buyers decided to reappraise it, they broke through on the 24th of February. There was then a steady rise in price till the 1st of April 2021 when the price reached 0.94800 supply. The buyers got exhausted at this point and the market began a swift descent. USDCHF fell past 0.90500 and hit 0.89230 demand zone where the buyers got revived. USDCHF ascending again but it again also faces a major resistance in 0.90500. It has bounced off the zone twice, but USDCHF is set up to reappraise it once again.
USDCHF Key Zones
Supply Zones: 0.94800, 0.92200, 0.90500
Demand Zones: 0.89230, 0.88400, 0.87600
A double-bottom reversal pattern has been created. Price is expected to travel to the 0.90500 neckline. On the daily time frame, the 7 and 14 MAs (Moving Averages) are about to cross each other in an upwards direction. The RSI (Relative Strength Index) which is currently at 42.39 has adjusted to an upwards direction to show upwards movement.
USDCHF Price Anticipation
The double-bottom reversal pattern is visibly seen on the 4-hours chart. The 7 and 14 MAs, imitating those on the daily chart are about to cross each other upwards, conforming to a long position. Likewise, the RSI indicator is at 43.44 and moving upwards, though showing a little retracement in the market.
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