USDCHF Analysis: Buyers Have Lost Their Tenacity
The currency pair is experiencing a notable shift in market dynamics as buy traders face challenges. This has, however, resulted in a decline in the price. This shift became evident as November began with a temporary pullback.
USDCHF Key Zones
Demand Zones: 0.89900, 0.90000
Supply Zones: 0.92490, 0.94460
Since July, USDCHF has maintained a stable bullish trend. However, buy traders encountered resistance when attempting to push the price beyond the significant zone at 0.92490 in late September. In October, daily candlestick patterns turned bearish, leading to a drop in the price to the 0.88900 zone. Toward the end of the month, buyers managed to stage a recovery for USDCHF. Nevertheless, the consistent selling pressure may hinder a bullish rebound this time.
There is a possibility that selling traders could initiate a pullback. This will potentially drive the price down to the 0.90000 level. The Chainkin Money Flow Index on the daily timeframe indicates a bearish sentiment. The MACD signal line, on the other hand, remains close to the 0.00 line, indicating market indecision.
Market Expectation
Buy traders are currently on the sidelines, not making any active decisions. However, they may attempt to mount a strong defense against the bearish sentiment. This defense could improve their chances of a swift recovery in the currency pair. Following price equilibrium in the short time frame, the buy traders could charge up again. The sell traders are still holding back bullish sentiment as we speak.
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