USDCHF Falls Back as It Continues to Rally Up

USDCHF Analysis – Price Falls Back as the Market Approaches a Trend Line

USDCHF falls back despite being in an uptrend movement. As the market continues to rally, a pullback is inevitable. The sellers will push the price to fall back before we can expect a rally. The price has been reacting on a trend line structure, and the market is continuing to make a swing high upward reaction at the significant level of 0.92300. The market is anticipated to fall before continuing its optimistic climb.

Significant USDCHF Levels

Resistance Levels: 0.94720, 0.92300
Support Levels: 0.90200, 0.89470
USDCHF buyers first gained their bullish strength after the price broke through 0.89470 and retested it. The buyers then went long before also reacting at the 0.92300 significant level. Following that, USDCHF made a swing high at the 0.94720 significant level before price then made a progressive fall back to the 0.89470 significant level. At this point, the market is seen reacting before the price rallies upward.

USDCHF is also seen reacting at the trend line as it continues to retest it. It continues to make a progressive push forward and the market also falls back to the trend line. The Stochastic Oscillator indicator shows price movement near the overbought region, meaning that the market will continue to make a progressive fall before rising again. The Bollinger Band indicator also indicates that price is returning to the channel, having crossed through the middle band.

Market Expectation

On the 4hour chart, the price has continued to fall due to the sellers’ pressure. As it continues to fall back, we should anticipate a buy at the dip. The Bollinger Band indicator shows price movement around the middle band, indicating that price will go lower. The Stochastic Oscillator indicator also indicates crossings below 50, suggesting that price action will return to the trend line. As the market falls further, we can expect a buy around the trend line structure.

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