USDCHF Daily – Bearish momentum building

Theunis Kruger
USDCHF price graph on rock surface

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.

Theunis Kruger

Latest news

MetaTrader MT4 and MT5 Disappear From Apple’s App Store
Social media is abuzz regarding reports that MetaQuotes apps have been removed from the Apple App Store. Read more
The New Crypto Scams To Look Out For After ‘The Merge’
After six years of delays, Ethereum’s ‘The Merge’ has finally been completed. Read more

Safest Forex Brokers 2022

Broker Info Best In Customer Satisfaction Score
#1 AvaTrade LogoYour capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
#2 BlackBull Markets LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
#3 66% of retail CFD accounts lose money Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
#4 Forex Broker eToro Logo67% of CFD traders lose Founded: 2007 Global CFD & FX Broker
Number One Broker
#5 Plus500 Forex broker logo72 % 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 Broker
Number One Broker
Best Trading App Visit broker

    Forex Fraud Certified Brokers

    IQ Option Logo
    Exness Small Logo
    XM Logo
    ATFX Logo
    Plus500 Small Logo
    AvaTrade logo
    City Index Logo
    OctaFX Logo Logo
    BlackBull Markets Logo
    IC Markets Logo
    HYCM Logo
    LegacyFX Small Logo
    skilling logo