USDCHF Analysis – Bulls Dominate as the Market Grows Sluggish
USDCHF bulls dominate the market as it reduces volatility. The market drops to a confluence zone on the 1st of November and then the bulls stepped in swiftly to influence the market. Price was pushed up gradually with undulating volatility till it reached the weekly resistance at 0.93350. At this point, USDCHF pulled back and pushes up above the level. But at this point, market volatility began to drop.
USDCHF Key Levels
Resistance Levels: 0.93770, 0.93350
Support Levels: 0.91070, 0.92190
The current dominance of the market is a part of the general bullishness of the market. The bears have been trying to wrestle the market from the buyers, but there are several structures in place by the buyers to keep the market on an uptrend. A descending triangle was first used to pump the price up. When the bears plunged it using a head and shoulder pattern, a confluence structure was on hand to rebound the market.
Throughout the tenure of the bulls, market volatility has been undulating. The lowest points, as shown by the ATR (Average True Range) indicator, are when the price drops temporarily below the descending channel and also when the market falls as a result of the head-and-shoulders formation. However, USDCHF is on the rise again, and meanwhile, market volatility is plunging. Notwithstanding, the price is expected to keep pushing up towards 0.93770.
Market Prospects
The 4-hour chart shows that the market is pulling back again for a retest at 0.93350 before resuming its uptrend. As a result, the EFI (Elders Force Index) has fallen towards the middle line. Volatility is also dropping deeper, as shown on the ATR chart. Buyers, on the other hand, should be able to maintain a position above 0.93350 for the uptrend to continue.
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