USDCHF Buyers Are Pulling Strings Despite Strong Selling Action

USDCHF Analysis – Buy Traders Intercept Selling Action

USDCHF buyers are pulling strings despite strong selling action. The currency pair has been on a downward trend since the end of 2022, with bearishness pervading the market. Last year, the bears took control after liquidity dropped below the parity level, leading to a strong downtrend for the pair. This bearish trend has been mostly consistent, with the bears setting orders throughout the year 2023. However, recently the bulls have stepped in and managed to push the price back up toward the 0.94320 key zone, giving some respite to the bearish traders. Despite this pullback, the buyers have now taken the lead and are pushing the price back to the 0.88750 key zone.

USDCHF Key Levels

Resistance Levels: 0.98470, 0.93370
Support Levels: 0.90810, 0.87840

This is a very interesting turn of events, as the buying action is disrupting the bearish setup in the market. It seems that the bulls are determined to challenge the bearishness and are taking further steps to push the price toward the key zone. Whether this will result in a reversal of the downtrend remains to be seen, as the bears could easily regain control of the market should the buyers fail to break the key zone.

The current market trend is bearish and is expected to hit the old monthly low of 0.87840. The Moving Averages of days 9 and 2 are creating a strong resistance zone for the bearish tendency. The MACD is also in a bearish trend. Despite the recent pullback caused by buyers, the overall market picture suggests that sellers are still prepared to cause further breakthroughs.

Market Expectation

Investors should be cautious in their trading decisions, as the market is currently favoring sellers. It is important to keep an eye on the Moving Averages and MACD indicators to determine the strength of the bearish trend. While buyers may cause temporary pullbacks, the overall market sentiment remains bearish. The ongoing bearish trend is expected to continue, with sellers prepared to cause further breakthroughs. Investors should exercise caution and closely monitor market indicators to make informed trading decisions.

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