USDCHF Analysis – Sellers Make a Breakthrough Below 0.95950
USDCHF sellers finally gain traction and break through the 0.95950 significant level. This is the second time in a month that the sellers have forcefully crashed the market to the consolidation support level. A downward surge from the 1.00000 resistance level helps to violate the 0.95950 level as a support. It remains to be seen if the sellers will now have a free fall or if the buyers will react.
USDCHF Significant Zones
Resistance Levels: 0.97100, 1.00000
Support Levels: 0.95950, 0.93770
Earlier in the year, at the end of the first quarter, the bulls violate the 0.93770 after a long period of consolidation. This breakout led to a more than 7% price rise, reaching the 1.00000 strong resistance level. Predictably, the buyers tire out and couldn't cause any disruption to the resistance. This allows the bears to take advantage of the situation to crash the market to 0.95950.
The critical level at 0.95950 remains firm as a support level and therefore repels the downfall in the market. This enables the buyers to drive strongly again at the 1.00000 resistance. However, the buyers came out second best, allowing the sellers to take advantage of the situation with more volatility. They succeeded in defying 0.95950 as a support level. In the process, the price trades to the downside of the MA period 24 (Moving Average).
The daily chart's ATR (Average True Range) indicator shows the upward strides in the market came with increasing volatility. Still, the sellers have for an ally the 1.00000 resistance level. The 4-hour chart shows that the bearish stroke that broke 0.95950 as a support level has a significant volatility drop. The bearish bias is expected to drive the market downward towards 0.93770 as support.
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