USDCHF Analysis – Sellers Are Yielding New Strength Downward
The USDCHF market changes focus back to the 0.88450 price level. Despite a bullish arrival back to the 0.91220 significant zone, sell traders have made their presence felt, resulting in a change in the market trend. This shift in trend could potentially impact the market’s performance in the coming days.
USDCHF Key Levels
Resistance Levels: 0.98650, 0.95620
Support Levels: 0.91220, 0.88450
Currently, sellers are taking the purge seriously, as evidenced by the rejections. The Stochastic Oscillator on the daily chart suggests that the USD/CHF currency pair is more likely to trade lower shortly. Investors need to keep a close eye on the market and make informed decisions based on the current situation.
The currency market has been dominated by bearish strength for a while before the bulls recently began their campaign. This trend has been evident since last year, with a bearish fall in prices. Sellers have been active, and this has affected the market direction for an extended period. The bulls were under pressure and fell below the parity level, giving rise to a bearish order lower as sellers breached the 0.95620 key zone. After a short pause, buyers redirected price momentum back to retest the 0.95620 significant level. However, the bearish strength continued to broaden, with price momentum racing lower. The sellers were able to hold the bearish trend down to the 0.88450 significant zone before buyers stepped in to take action.
The Bulls have finally ended their campaign close to the 0.91220 price zone. Recently, the market’s focus has shifted. It is therefore time for bearish action to continue in the market. The Parabolic SAR (Stop and Reverse) indicator is engaged lower as sellers make their focus down to the 0.88450 significant level. The bearish presence will therefore depict a chance for more opportunities for sellers to penetrate lower in the market.
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