USDCHF Analysis – Sellers Cap the Market at $1.00000
USDCHF Sellers have capped the market thus far at the $1.000. Therefore the price has been unable to proceed further beyond this level. The result is a mounting pressure downward. The $0.95300 price level is the acting support level, and it is beginning to bulge due to the magnitude of the pressure being put on it. Buyers currently control the majority of the market as they seek to retest the $1.000 level.
USDCHF Significant Zones
Resistance Levels: $1.00000, $1.00600
Support Levels: $0.95300, 0.93770
The buyers were mightily empowered just by the end of March. By the beginning of April, the market was pumped for a rally. As a result, the price experience a surge upward from around the 0.92190 key level to a little above the $1.00000 resistance zone. Bears, however, reacted sharply to repel the market immediately. This led to a precipitous drop to around the $0.95300 support level.
An unrelenting buying base would make another ambitious attempt at bypassing the $1.00000 key level, but this also led to another depression in the market. By the third time, USDCHF was not even strong enough to reach the supply level before it crashed back to the $0.95300 demand zone. The support line is now feeling the weight of the pressure, as shown by the general downtrend of the RSI (Relative Strength Index) line.
While the Momentum indicator is undulating evenly between the bearish and bullish portion of its chart on the daily time frame, it is primarily undulating in the bearish portion on the 4-hour chart. The line has just recently jumped into the bullish area. This is due to the current bump of the market after it hit the $0.95300 demand zone. The same goes for the RSI whose line is now drooping due to the current dip in the market. The market will rise to test $1.00000 before further drops.
Note: Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.