USDCHF Analysis – The Bullish Round May Be Over for the Market

USDCHF bullish round may have come to a firm end as the price takes a severe plunge from the 100500 price level. The price began the bullish round after escaping the limitation placed on the market at around 0.93410. The price continued its ascension, defying multiple prominent key levels with relative ease. However, a key level with a unique strength at $1.00500 caused an abrupt end to the uptrend and spiralled down the market.

USDCHF Prominent Zones

Resistance Levels: 1.02000, 1.00500, 0.96760
Support Levels: 0.91870, 0.93410, 0.94640
A false breakout that preceded the main breakdown was caused by much agitation on the bulls in pushing the price level to a much-needed height. Therefore, USDCHF employed a double bottom chart pattern to break the border, but the price was not strong enough then to sustain the rally.
A month later, from the first failed bullish price action, the price eventually defied the border of its triangle and the key levels that also guarded it. The price surged continuously upwards till it reached 1.00500. By this point, the market has expanded its energy. This makes it easier to understand the sentiment of the seller.

Market Analysis

Despite the dramatic downturn in the price, there is still hope for the buy traders. The daily chart shows the price accumulating below 0.96760 with the MA (Moving Average) period 50 as support. In the short term, the market needs to do more to leverage the support of the MA period 50. Meanwhile, the Momentum Indicator suggests increasing momentum with the price accumulation. USDCHF will aim to return to 1.00500.

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