Market Analysis: Price Reaches Previous Trend Peak
USDCHF has achieved a significant milestone by reaching the major resistance zone of 0.9230. This accomplishment marks the culmination of a persistent effort by buyers, who have adeptly navigated numerous resistance barriers to ascend to the peak of the previous trend. Notably, this ascent poses a fresh challenge for buyers as they endeavor to sustain momentum following a setback experienced in October.
Key Levels for USDCHF
Demand Levels: 0.9010, 0.8750, 0.8560
Supply Levels: 0.9230, 0.9420, 0.9500
The trajectory of USDCHF has been notably guided by the moving averages (periods nine and twenty-one), particularly evident during the bullish surge witnessed in September of the preceding year. However, a pivotal moment arose in October when the moving average pattern intersected at 0.9230, coinciding with a bearish reversal confirmed by three consecutive black crow candlesticks dipping below the moving averages, ultimately concluding the final quarter of the year on a bearish note.
The onset of 2024 witnessed a resurgence in bullish sentiment, notably signaled by the oversold market conditions identified by the Stochastic indicator. January witnessed a notable turning point as the moving average period nine crossed above the period twenty-one, indicative of a bullish trajectory. Furthermore, daily candles demonstrated a propensity to utilize the moving averages as a supportive foundation for upward movement, while a discernible trendline connecting major market lows facilitated the identification of pullbacks within the market structure.
Market Outlook
Presently, the Stochastic indicator indicates an overbought condition, hinting at the possibility of a retracement towards the bullish trendline to seek support before potentially challenging the 0.9230 resistance zone once again. It’s worth noting that the resilience of this zone may be tested upon reevaluation, potentially paving the way for a breakout scenario with a target projection of 0.9420.
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
Leave a Reply