USDCHF Analysis – Sell Traders Are Still Ready for More Drawdown
USDCHF sellers keep the reins below the moving average crossing indicator. As we observe the USDCHF market, it is evident that the sellers have kept a strong hold on the market. This has been the case for quite some time, and we have seen the trend gradually intensify. It started with a brief bullish push to the 0.94340 key level in February; however, the buyers faced heavy resistance and were quickly rejected.
USDCHF Key Levels
Resistances Levels: 1.01420, 0.98440
Support Levels: 0.93320, 0.88720
Consequently, this paved the way for the sellers to take over, and they have been steadily increasing their pressure on the market. The sell trend has now gone all the way down to the 0.88720 key zone, and the buyers have been trying to fight back and break through the sellers’ hold. While they have been making some progress, the sellers remain in the driver’s seat, and the market continues to be below the Moving Average Crossing Indicator. What we can take away from this is that the sellers have been able to establish powerful control over the market; however, the buyers are not ready to give up just yet.
As such, the battle between the two is likely to continue, and we can expect to see some interesting developments soon. The market could very well turn around if the buyers manage to break through the sellers’ resistance; however, for now, the sellers seem to be in the lead. The USDCHF price has been facing strong resistance above the moving average indicator. This has been making it difficult for buyers to push the price further up, while sellers have been able to take advantage of the situation. As a result, buyers are looking to bounce off the resistance zone before sellers resume their trend.
On the 4-hour chart time frame, the Stochastic indicator is over the buying strength fence. This suggests that buyers have been losing steam and sellers are increasingly gaining strength. As a result, the USDCHF price is likely to experience more bearish pressure, with the 0.88720 key zone likely to be a major target of the sellers.
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