USDCHF Analysis – Bulls Held Below the Key Zone at 0.87700
USDCHF faces downside pressure as sellers gain interest. The market is being weighed down as sellers begin to show increased intention. The buyers have encountered difficulties in making progress, particularly in breaking above the key zone at 0.87700. Despite their attempts, the buyers were unable to breach this strong resistance level. They ultimately surrendered it to the sellers.
USDCHF Market Levels
Resistance Levels: 0.96050, 0.94220
Support Levels: 0.91170, 0.87700
Last week, the buyers made an initial attempt to penetrate the 0.87700 key zone, but it proved to be too formidable. Today, the market has once again reversed direction after struggling to cross above the 0.87700 level. This indicates that sellers are gaining interest and are prepared to challenge the price again. If the bulls continue to lose strength, it could adversely affect their overall performance.
Looking back to last month, sellers demonstrated strength and pulled the price down to the significant zone around 0.85650. Since then, the bulls have been making efforts to recover and reclaim key levels.
Bears may seize an opportunity to push the price lower given the current weakness exhibited by buyers. The Stochastic Oscillator suggests a potential selling opportunity, indicating that traders can consider short-term selling in the market. However, the Parabolic SAR (Stop and Reverse) indicator still confirms a buying opportunity despite the challenges faced by buyers.
Market Expectations
On the 4-hour chart, the market is accumulating below the key zone at 0.87700. Based on the current landscape, the price is more likely to break lower in the coming days. The Stochastic Oscillator further supports the sell opportunity.
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