USDCHF Analysis – Price Encounters Resistance and Fails to Surpass Weekly Resistance
USDCHF encounters resistance again at the 0.93770 significant level, and as a result, the price drops abruptly. The market has been working its way upward after a reversal at a confluence zone, which consists of an uptrend line and a strong support level. It was a strong upsurge that only retraced once below 0.93350, after which the price shot up. USDCHF, however, encounters resistance at the next level at 0.93770, and the price drops.
USDCHF Key Levels
Resistance Levels: 0.93770, 0.93350
Support Levels: 0.91070, 0.91570
USDCHF keeps working at lifting the entire outlook of the market, but the 0.93770 resistance level has so far proved a stumbling block. While the market generally maintains an uptrend from below, it hasn’t been making much progress upward as price encounters resistance again and again at the 0.93770 significant level. It was responsible for the downturn of the market the last time it used a head-and-shoulders reversal pattern.
A strong confluence zone helped to keep the market on an uptrend and keep the pressure on the resistance level. Price rose once again, and though it suffers rejection at 0.93770, it is another blow at the resistance level to mount pressure on it. The aim is that the level will eventually buckle under pressure. Though the MACD (Moving Average Convergence Divergence) still indicates a downtrend, reversal candlesticks are now being observed on the chart as price touches down on its strong support zones.
Market Prospects
On the 4-hour chart, the market is now stalling as price encounters its strong support zones. The MACD on the 4-hour chart is already giving signs of reversal as its lines cross each other upward from beneath the zero level. Also, bearish histogram bars have diminished and are now being replaced by bullish bars. At this point, there is more chance for a reversal to be effected at this point because the ATR (Average True Range) indicator shows that there is a decrease in market volatility as the price stalls at the 0.91570 support level.
The market is set to spring up from 0.91570 on its way to testing the weekly resistance at 0.93770 again.
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