Market Analysis – Bullish Campaign Continues as USDCHF Eventually Broke Through 0.92300 Resistance
USDCHF eventually broke through the 0.92300 key level to press on with its upward drive. USDCHF began the year having sunk to the 0.87600 demand level. The last time the price was at that level was on 9th January 2015.
The market began working its way upward and the first major barrier it faced was the 0.89300 supply line. This key level has been its antagonist since the 3rd of December last year when the price dropped below it. It kept the price pinned below it until the new year. USDCHF eventually broke through the supply line at the beginning of February, only to fall back and push through again.
Subsequently, the price rose through the ranks without much trouble, till it got to 0.93700. The price was drawn back to below the 0.93200 supply level. The market was trapped here for nine trading days. USDCHF broke out of the supply level and was bulldozed to the 0.94700 key level. At this juncture, the market bulls got exhausted, and the price began a swift decline.
At the 0.92300 supply level, the bulls tried to rally but were knocked down. The same thing happened at the 0.91500 and 0.90500 supply levels. Finally, USDCHF took a position in the 0.89300 demand zone with strong support. The bulls tried to drive up from here but were stopped by a 0.90500. The bulls’ persistence was rewarded at the second attempt when a strong bullish drive drove the market past the 0.90500 and 0.91500 supply levels, but the price failed miserably at the 0.92300 supply level.
An unrelenting market, however, fell back to the 0.91500 demand level and eventually sprang up past the 0.92300 supply to continue its bullish campaign. The 9MA (Moving Average) and RSI (Relative Strength Index) indicators both indicate a bullish market movement.
USDCHF Key Zones
Supply Zones: 0.94700, 0.93700, 0.93200
Demand Zones: 0.92300, 0.91500, 0.90500
Market Prospects
The market is set to continue its bullish campaign after turning the one-time 0.92300 resistance level into support to bounce higher. There is a current pullback in the market as attested by the RSI, but with the 9MA line acting as support for the market, USDCHF is set to resume its upward movement.
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