USDCHF Skyrockets Upward After a Prolonged Consolidation

USDCHF Analysis – Price Skyrockets After a Breakout From Consolidation

USDCHF skyrockets upwards after it breaks out of a prolonged consolidation. As the price approached the tip of the triangle structure, an evident uneasiness can be noticed in the market. Both the bulls and bears had nearly equal chances to influence the market in their favour. The bears particularly leveraged the 0.92570 mid-price level to trap the market below, but an escape above it aided the bulls and the market skyrockets upwards.

USDCHF Key Levels

Resistance Levels: 0.99960, 0.94640, 0.93410
Support Levels: 0.92570, 0.91100, 0.87640
The ranging of the market is characterized by consistent lower highs and higher lows. And this started in mid-2020 when a previous consolidation broke out in favour of the bears below the 0.94640 key level. Bears still assumed control of the market till USDCHF dropped further to 0.87640, where the bears were strongly repelled. From here, the price skyrockets towards 0.94640.

The 0.94640 price level presents itself as a resistance to the market, hence, the price drops again, but this time to a higher low around 0.89960. And subsequently, USDCHF then follows this consolidation pattern, making higher lows and lower highs, giving rise to a triangle structure. A false breakout on the 16th of March, 2022, already predisposed the market in the bulls’ favour, and then the price skyrockets upward.

Market Expectations

On the 4-hour chart, after USDCHF skyrockets, the price can also be seen pulling back to key levels to aid its upsurge. At 0.96760, the momentum of the market has weakened and the price is now dropping for a second pullback to the level. However, the Stochastic shows there is scope for more upward movement and the MA period 50 (Moving Average) remains as support for the market. The price target is 0.99960.

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