USDCHF analysis: prices fall in a triangular formation and break upside down
The USDCHF remains on the rise successfully after shrinking into a triangle formation for several months since the beginning of the year. The pattern started when the price fell to 0.87600 on January 6, 2021. The market took until the end of January before breaking the resistance of 0.889300. A setback returned USDCHF below the resistance level before rising 5% upwards. The price will retreat to 0.92400 before finally reaching 0.94740, the highest key level of the year.
USDCHF key levels
Resistance levels: 0.92400, 0.92700, 0.94740
Support levels: 0.87600, 0.889300, 0.91300
There was a significant consolidation at this time, when USDCHF was limited between 0.92700 and 0.91300 for 29 trading days before the price went down. The market would only fall below 0.90780 before rising again to the resistance level of 0.92400. And so it has broken down to the advantage of a symmetrical triangle now formed. The market is currently trying to surpass 0.92400, and we could see a pullback towards the top edge of the triangle before a new upward movement.
Anticipation in the market
On the 4-hour chart, the market is currently trading around 0.92295. So far it has not achieved the best of the key level 0.92400. The parabolic SAR (Stop and Reverse) still considers the market to be bullish with 3 points according to the 4-hour chart. However, the RSI (Relative Strength Index) helps us see that the USDCHF is at the level of buying the chart at the 65 mark, just coming down from the overbought region.
There is a decline in the charts around the 0.92000 level, after which we can expect the price to exceed the resistance greater than 0.92700.
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