USDCHF Key Level Holds a Threat Against Buy Sentiment

Market Analysis – Buyers Lose Stamina 

USDCHF key level holds a threat against buy sentiment. The 0.90710 key level holds as a formidable barrier for buy traders this week. Technically the currency pair has witnessed an interesting battle between buyers and sellers in the past few months. The buyers initially showed strength, pushing the price above the significant level of 0.86000. This bullish momentum continued as the bulls broke through other market levels, including the 0.87290 key level.

USDCHF Key Levels

Resistance Levels: 0.91260, 0.90710
Support Levels: 0.88350, 0.88690

However, once the price reached the 0.90710 key level, the bullish momentum started to wane. The buyers were not able to sustain their buying pressure beyond this level, leading to a consolidation phase. This month, the buyers made a comeback, picking up from the 0.87290 price zone. Despite their efforts, they have not been able to breach the 0.90710 key level. While the bulls may be showing signs of weakness near the key level, they are still very much in the picture.

Market Expectation

The bullish sentiment is evident in the MACD (Moving Average Convergence Divergence) indicator, which shows a tight spread. This indicates that the buyers still have the potential to push the price higher. On the other hand, the RSI (Relative Strength Index) suggests that the buyers may be trading close to their peak. This could mean that the buyers are reaching a point of exhaustion, making it difficult for them to break through the 0.90710 key level.

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