Market Analysis – Price Falls Below 0.91300 as USDCHF Drowns
USDCHF drowns below 0.91300 after it yielded to bearish influence. The market had an upsurge that rose to 3% from the 16th of June 2021. At the end of this upsurge, the price immediately began conforming to a ranging position. The 0.91300 support kept it from going below, but neither did the 0.92700 resistance level allow it to continue its bullish momentum. Therefore, the market began to range.
Key Levels
Resistance Levels: 0.91300, 0.90780
Support Levels: 0.90000, 0.89300
All the while, even though the ranging movement, price was still in an uptrend. It was not until the 8th of July 2021 that the huge bearish candle dashed through the EMA period 9 (Moving Average Exponential) to signal that bears may want to take advantage of the ranging position in the market. USDCHF did recover but not beyond 0.92400 and eventually, the price drowns below the uptrend line, not to recover above it again.
As in previous times, the 0.91300 key level tried to defend the market, but the bearish pull outpowered it and plunged USDCHF. The EMA period 9 is now lying above the daily candles. It, therefore, shows that the market has succumbed to sellers. Bears have drowned the market below the next support at 0.90780, but at this point, a resurgence seems to be taking place. The latest two daily candles are bullish and both are testing 0.90780, now as resistance.
Market Expectations
On the four-hour chart, the market is now struggling to push above the 0.90780 level. The current candlestick is a spinning top candlestick. This is a sign of gross indecision in the market, where neither buyers nor sellers have the upper hand. The EMA period 9, however, is supporting price to go up after going below the 4-hour candles. The RSI (Relative Strength Index) has its signal line lying directly on the middle point of 50. Therefore, the market lies in the balance and the slightest of influence will sway the market either bullish or bearish.
At the present, it will take a bit more than dormancy from the bulls to lift price above 0.90780 and, as a result, USDCHF could drown further to 0.9000.
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