USDCHF Boldly Confronts the 1.00000 Resistance Level

USDCHF Analysis – The market boldly Confronts the 1.00000 resistance level

USDCHF boldly confronts the resistance level after several previous failures to get beyond the level. The market experienced significant rejections in mid-May and mid-June. At other times, the price was not able to boldly rise to confront the resistance level. The market has strengthened significantly in recent times and is finally showing the boldness and strength to make a breakthrough.

USDCHF Significant Zones

Resistance Levels: 1.00000, 1.00600, 1.01300

Support Levels: 0.98910, 0.95300, 0.93770

After the major rejection around mid-June, the buyers became weakened so much that they weren’t able to boldly rise to the level the next time and stopped short at 0.98910. Then a strong drop followed in which the currency pair dipped below the 0.95300 strong demand zone. The buyers, however, did well to recover above the level, but yet could not rise to confront the 1.0000 resistance.

There was yet another retracement back to the strong demand zone at 0.95300, which set the price up for a double-bottom bullish structure. The market got pumped up. It faced rejection as usual at the supply level, but the buyers were persistent and dogged this time around. Using the middle level of the Bollinger Bands as the support, they kept tugging at the 1.00000 level till it was breached. USDCHF however, remains within the supply zone below 1.00600.

Market Expectation

The 4-hour chart shows vividly how persistent the bulls were in pushing through the 1.00000 level. However, its influence extends to 1.00600 and the market will have to break through that also to be truly free of this impervious resistance level. USDCHF has camped in the upper half of the Bollinger Band, springing off the middle band and pushing against the upper band as it seeks to violate 1.00600 also.

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