USDCHF Analysis – Sellers Lose Grip
USDCHF sell momentum is in decline. The pair is showing a strong downtrend, which means that the US dollar is losing value against the Swiss franc. The sellers have been in control of the market since the start of this week. They have pushed the price lower with high volume and broke the important support level of 0.89550.
This level was acting as a floor for the price, but now it has become a ceiling. The sellers have lost some of their power recently, as the price has reached another support level at 0.88460. This level is a potential turning point for the market, as the buyers may try to push the price higher from here.
USDCHF Price Levels
Demand Levels: 0.88640, 0.89550
Supply Levels: 0.92400, 0.90520
The buyers have been weak so far, as they have not been able to stop the sellers from driving the price lower. If the sellers lose more momentum, they may not be able to keep the downtrend going.
On the daily chart, the market is still showing a bearish outlook. This means that any rise in the price is likely to be temporary and not a sign of a reversal. The Moving average crossing indicator shows the average price over a period of time. It will soon confirm the continuation of the downtrend on the daily chart.
The Stochastic RSI (Relative Strength Index) indicator shows the speed and direction of the price movement. It is also supporting the bearish view for the USDCHF pair.
Market Expectation
The current consolidation, which is a period of low volatility, is probably caused by the buyers trying to accumulate more positions. However, this may not be enough to change the direction of the market. The 0.88640 level is a key battleground for control of the market as the week plays out.
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