USDCHF Analysis – USDCHF Remains in Consolidation
USDCHF price shows no plan for future trends as it remains quiet. It is a new month, and the traders haven’t found their rhythms in the market. The USD/CHF pair has been in decline since the parity level was breached last year. Since then, the sellers have been the dominant force, pushing the price lower through several key zones.
In March, a bearish setup was seen as the price retested the 0.94280 key level. Since then, the price has kept on declining until it hit the 0.91100 key level in May. The buyers were able to hold back the sellers at the 0.88490 market zone; however, they weren’t able to push back to the 0.91100 key level last month. This week, the traders have been less responsive, resulting in price accumulation.
USDCHF Market Zones
Resistance Zones: 0.96430, 0.94280
Support Zones: 0.93390, 0.88490
Nevertheless, there have been few indications of buying activity from the traders. This has kept the USDCHF pair from plunging lower; however, the sellers remain in control. The market is now looking to break through the 0.88490 key level; however, it remains to be seen whether the buyers will be able to break through this level.
The market conditions remain uncertain, with buyers and sellers still vying for control of the USD/CHF pair. The sentiment of the markets is largely bearish; however, the buyers have been able to put up a good fight lately. On the daily time frame, the buyers are pushing steadily despite the lack of momentum in price.
This could be indicative of a lack of conviction among traders who are unwilling to push out. Meanwhile, the Momentum indicator is less in motion, which further suggests that the market is in a consolidation phase. However, this is not to say that traders should be complacent.
Market Expectation
On the 4-hour chart, there is still no clear direction for the USDCHF price, so traders should pay close attention to the price distribution and be prepared for any potential market movements. Investors are still waiting to see if the buyers will be able to break through the 0.88490 key level and take control of the pair. Until then, the USDCHF pair will remain quiet, with no clear direction.
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