USD/CHF Long-Term Analysis: Bearish
USD/CHF pair has been in a downward movement for several weeks. The currency pair made a brief uptrend in March and April. A Fibonacci tool was used to determine the extent of the uptrend. On March 8 uptrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that USD/CHF will rise to level 1.272 Fibonacci extension and reverse. The pair will reverse to the 78.6% Fibonacci retracement level where it originated. From the price action, the uptrend has reversed close to the Fibonacci level. It reversed and tested the 78.6% Fibonacci retracement. However, the currency price has broken the Fibonacci level and the moving averages. This indicates a further downward movement of price.
USD/CHF Indicator Analysis
USD/CHF is at level 30 of the Relative Strength Index period 14. It indicates that the pair is approaching the oversold region of the market. The 21-day SMA and 50-day SMA are sloping upward indicating the uptrend.
Technical indicators:
Key Resistance Levels: 0.9400, 0.9500, 0.9600
Key Support Levels: 0.9100, 0.9000, 0.8900
What Is the Next Direction for USD/CHF?
The currency pair has resumed a downward move after forming a bearish double top in the lower time frame. The currency price has also fallen below the moving averages. This suggests a further downward movement of price.
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