USDCHF Buyers Face Rejection At The 0.90280 Resistance Level

USDCHF Buyers Encounter Rejection

USDCHF buyers have encountered resistance at the 0.90280 significant level, leading to a pullback after an earlier attempt to advance. This presents a critical challenge for the bulls, who had demonstrated strength earlier this month.

USDCHF Key Levels

Resistance Levels: 0.90280, 0.91500
Support Levels: 0.89100, 0.87380

USDCHF buyers initiated a bullish recovery in mid-December, climbing from the 0.87380 support zone. The rally gained traction as buyers successfully breached the 0.89100 key level last week. However, after briefly surpassing this level, the price retraced, encountering substantial resistance at the 0.90280 zone.

Momentum indicators present a mixed outlook. The Momentum indicator suggests potential for continued upward movement, signaling residual bullish strength. On the other hand, the Stochastic Oscillator highlights diminishing buying pressure, pointing to a decline in bullish sentiment. For buyers to maintain their upward trajectory, they must regroup and decisively break above the 0.90280 resistance level.

The rejection at 0.90280 is a setback for buyers, who now face the critical task of defending the 0.89100 support level to prevent further declines. If buyers manage to stabilize and regain strength, they could initiate another push toward the 0.91500 resistance zone. However, failure to hold 0.89100 may allow sellers to drive the pair lower, targeting the 0.87380 support zone.

Market Expectation

On the 4-hour chart, sellers are exerting pressure, creating a pullback that tests the 0.89100 support level. Buyers appear to be temporarily sidelined, giving sellers room to maneuver.

The Stochastic Oscillator indicates bearish sentiment dominating the shorter time frame, while the Momentum indicator reflects a weakening of buying strength. As shown by forex signals, USDCHF remains under pressure, with buyers needing to regroup to reclaim control.

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 for your investing results.