USDCHF Daily – Bearish momentum building

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.

Nigel Frith

Share

Tweet

Safest Forex Brokers 2024

	Broker	Info	Best In	Customer Satisfaction Score
#1	73% of retail CFD accounts lose money. Founded: 2014	Global Forex & CFD Broker	Best Trading Conditions Visit broker	4.9
#2	Your capital is at risk Founded: 2014	Global Forex Broker	BEST SPREADS Visit broker	4.8
#3	Your capital is at risk Founded: 2006	Globally regulated broker	BEST CUSTOMER SUPPORT Visit broker	4.9
#4	81% 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
#5	Between 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010	Global Forex Broker	Low minimum deposit Visit broker	4.9
#6	76% of CFD traders lose money Founded: 2007	Global CFD & FX Broker	ALL-INCLUSIVE TRADING PLATFORM Visit broker	4.9
#7	Your capital is at risk Founded: 2009, 2015 and 2017	Global Forex Broker	Low minimum deposit Visit broker	5
#8	Your capital is at risk Founded: 2006	CFD and Cryptocurrency Broker	CFD and Cryptocurrency Visit broker

Forex Fraud Certified Brokers

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.