USDCHF Is Trading in a Downtrend Contrary to the 0.91070 Key Level

Market Analysis – 0.91070 Opposes the USDCHF as It Trades in a Downtrend

USDCHF is trading in a downtrend and is being opposed by the 0.91070 demand zone. This comes after the price had overcome confinement of between 0.90350 and 0.89460 to surge up. Price rose almost 3% in just three days to reach above the 0.92000 price level, after which the market began to trade in a downtrend gradually.

USDCHF Key Zone

Supply Zones: 0.92000, 0.92740, 0.93770
Demand Zones: 0.91070, 0.90350, 0.89460
The 0.92740 supply level kicked started the downtrend when it became impenetrable as the market trades upwards. Price, therefore, fell to the lower border of the down trend line from where it tried to rally again, but it would only make a lower low around 0.92000. What happened next was a greedy plunge by the bears to prematurely drive price lower. However, bulls responded similarly to return the price to the down trend line.

It was at this point that price traded into the 0.91070 support, which had refused to bulge. Price is now maintaining a parallel base on the 0.91070 demand level, while it keeps recording consecutive lower highs. Thus, the market is gradually forging into a descending triangle. The Parabolic SAR (Stop and Reverse) indicator shows the market has more bearish tendencies by displaying more dots above the candles than lower for the past 54 trading days.

Market Prospects

The 4-hour chart shows that price is trading upwards currently. The Parabolic SAR is currently showing strong bullish movement in the 4-hour time frame. However, the ATR (Average True Range) indicator shows bearish movements in the market move with the highest volatility and, with this, sellers can plummet the price to lower depths in a short space of time.

The price is expected to keep tapering within the descending triangle till it breaks lower to reach 0.90350.

Note: Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.