USDCHF Market’s Support Block Has Been Broken Down

USDCHF Analysis – The Market’s Support Block Has Been Broken Down

USDCHF market’s support block has been broken to the downside. This may signal the end of the bullish regime. The bulls have been testing the resistance level at 1.00000 and have been thus far unsuccessful. Hence, the pressure is now weighing on the support level from which the buyers depend. The sellers eventually breached the support level and, barring a strong market reaction, the price will drop even further.

USDCHF Key Zones

Resistance Levels: 1.00000, 1.00600
Support Levels: 0.93770, 0.95300

USDCHF broke out from a long-drawn consolidation with much gusto. It broke every barrier till it reached a strong resistance level at 1.00000. The inability to bypass this level hit the buyers hard and led to a serious decline. But the price leveraged the 0.95300 support level to stabilize itself and then launched another assault to break the 1.00000 resistance level.

The second assault of the buyers to break down the supply zone similarly ended in a failure and the market had to revert to the support level again. By now, the buyers had lost some fervour, such that they couldn’t even rise to reach the resistance level again before crashing back to 0.95300. The EFI (Elders Force Index) power line has plunged into a negative value to show a gradual shift of market influence.

Market Expectations

On the daily chart, the MA Cross is showing its crosses in a progressively downward pattern, which suggests that more and more bears are entering the market. This has now led to a breakdown of the 0.95300 support block. The EFI power line has also dropped below zero on the 4-hour chart. We expect a backlash from the bulls, but it might not be strong enough to propel the market back above 0.95300. As a result, the next support level at 0.93770 might be breached also.

Note: Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.