USDCHF Analysis – The Market Suffers Exhaustion and Dips Below 0.95300
USDCHF suffers exhaustion after exerting itself so much in a bid to rise above the 1.00600 critical level. The price did rise above the key level, but it then suffered severe exhaustion and slumped downward with consecutive bearish candlesticks. The price thus falls below several key levels and also plunges below the significant key level of 0.95300.
USDCHF Critical Levels
Supply Zones: 1.01300, 1.00000, 0.98580
Demand Zones: 0.96690, 0.95300, 0.93770
Since the beginning of the year, the market broke its weekly resistance and rose to another major resistance level at 1.00000. The price has been unable to breach this barrier since. Every attempt to push past the level has been met with equal or higher resistance. This continues till around August when the market summoned all the strength it could muster to execute a bullish reversal double bottom pattern to eventually violate the 1.00000 resistance.
However, the victory was short-lived, as the buyers collapsed at that point. The price began to fall immediately below that level. The market kept on plunging until it dropped below the 0.95300 support level. The slump only stopped at the uptrend line. The RSI (Relative Strength Index) line has also plunged to the bearish half and to the borderline of the oversold region, from where it has made a U-turn.
While the Parabolic SAR (Stop and Reverse) is hanging high above the market on the daily chart, it has switched below the candlesticks on the 4-hour chart. This is a sign that the buyers are recovering themselves and would like to begin a recovery. The first task will be to get themselves back above the support level of 0.95300, from where they can build a solid base to push further as they’ve always done. The 1.00000-1.00600 resistance remains a tragedy once more.
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