USDCHF Analysis – The Market Is Undulating in a Downward Direction
USDCHF market is undulating in a downward direction after it has been unable to breach the 1.00000 supply level. This shows that the drive of the buyers has been waning ever since and that the sellers are going stronger. This trend ensures that increasing strain is placed on the 0.95300 price level and this eventually leads to a drop in the price below the level. Currently, buyers are trying to recover above the price level.
USDCHF Key Zones
Supply Zones: 1.00000, 0.98910
Demand Zones: 0.95300, 0.93770
The bullish regime in the market is systematically coming to an end. The peak of bullish power was in April when the market rose through several barriers till it reached the 1.00000 supply level. The inability to violate the level immediately was the downfall of the buyers. Subsequent attempts to retest the supply zone(from a demand of 0.95300) grew weaker and weaker up to the point when the price plummeted below the demand level .
Having dropped below the strong price level, the buyers have become alert and are already working to have the market lifted back up above the 0.95300 demand zone. The price has sprung up from a demand level of 0.93770. The lower Bollinger Band also aids the rise of the market. The RSI (Relative Strength Index) has reached the zero level from below. If the RSI breaks through it upward, then it is likely the bulls will successfully return the market above 0.95300.
On the 4-hour chart, the market is showing a lot of upward momentum. At first, the line of the RSI is undulating upwards towards the overbought border. Also, the 4-hour candles are pushing against the upper Bollinger Bands in an undulating manner. With this, USDCHF market has traded above the 0.95300 price level. The new objective will be to hold the new price level above it. If the market stabilizes above this critical price level, it will gather momentum again to test the 1.00000 level again.
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