Written by Theunis Kruger, FX Trainer at FXTM
The USDCHF currency pair, on the D1 time-frame, made a short upward move until 29th February when a higher top was recorded at 0.98481.
Bears found the price attractive at that level and supply overwhelmed demand.
After the top at 0.98481, the market fell through the 15 and 34 simple moving averages and the momentum oscillator broke through the zero baseline into bearish territory.
This could have warned technical traders of a possible price reversal or formation of a new trend.
The likely reversal was further strengthened by the crossing of 15 and 34 simple moving averages, a so-called death cross and the occurrence of a series of strong bearish Japanese candlesticks during the downward break.
A possible critical support level formed when a bottom was recorded on 9th March at 0.91818.
Buyers tried to pull the market higher, but the price found resistance on 13th March at 0.95690 and sellers are currently trying to push the market lower.
If the USDCHF breaks through the critical support level at 0.91818, then three possible price targets can be anticipated from there.
Attaching the Fibonacci tool to the bottom at 0.91818 and dragging it to the resistance level at 0.95690, the following targets can be calculated.
The first target is estimated at 0.89425 (161 %) and the second price target can be calculated at 0.85553 (261.8%). The third and final target may be predicted at 0.79288 (423.6%).
If the 0.95690 resistance level is broken, the anticipated price targets above are thereby nullified, and must be reassessed.
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the USDCHF currency pair on the daily time-frame will remain bearish.
For more information, please visit: FXTM
Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
- What Does Binance Being Kicked Out of Belgium Mean for Crypto Prices?
- Crypto Traders and Coin Prices Face New Challenge as Binance Gives up its FCA Licence
- Interpol Declares Investment Scams “Serious and Imminent Threat”
- Annual UK Fraud Audit Reveals Scam Hot-Spots
- Former Schwab, Wells Fargo, and Morgan Stanley Advisor is Sentenced to Seven Years
- FX Fraudster On The Run After £70m Ponzi Scheme Collapses
What Does Binance Being Kicked Out of Belgium Mean for Crypto Prices?
Safest Forex Brokers 2023
|Broker||Info||Best In||Customer Satisfaction Score|
|#1||72% of retail CFD accounts lose money. Founded: 2014||Global Forex & CFD Broker||
Best Trading Conditions Visit broker
|#2||Your capital is at risk Founded: 2014||Global Forex Broker||
BEST SPREADS Visit broker
|#3||Your capital is at risk Founded: 2006||Globally regulated broker||
BEST CUSTOMER SUPPORT Visit broker
|#4||82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008||Global CFD Provider||
Best Trading App Visit broker
|#5||Between 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010||Global Forex Broker|
|#6||76% of CFD traders lose money Founded: 2007||Global CFD & FX Broker||
ALL-INCLUSIVE TRADING PLATFORM Visit broker
|#7||Your capital is at risk Founded: 2009, 2015 and 2017||Global Forex Broker|
|#8||Your capital is at risk Founded: 2006||CFD and Cryptocurrency Broker||
CFD and Cryptocurrency Visit broker
Forex Fraud Certified Brokers
Stay up to date with the latest Forex scam alerts
Sign up to receive our up-to-date broker reviews, new fraud warnings and special offers direct to your inbox