Annual Forecast for USDCHF (2021): Change of Price Direction Envisaged at $0.87 Level

USDCHF Price Analysis – December 29

The currency pair is receiving more pressure from the bears and this makes the price trading below the support level of $0.88 which may reduce the price to $0.87, $0.86, and $0.85 levels. In case the bulls defend the $0.87 level; the price may reverse and be confronted with the resistance level at $0.89, $0.90, and $0.91.

Key Levels:

Supply levels: $0.88, $0.89, $0.90
Demand levels: $0.87, $0.86, $0.85

USDCHF Monthly Chart: Bearish

USDCHF has been bearish in the long-term outlook. USDCHF has been bearish since the beginning of 2021. The bears are in control of the pair for the whole of 365 days. The high of the price can be found at the resistance level of $0.97. In the month of September, the bulls tried to pull back the price to retest the resistance level of $0.92, the following month, the bearish movement continues. At the moment, the bears are penetrating the support level of $0.89 aiming at the 2014 low at $0.88.

USDCHF Monthly chart, December 29

The 9-periods EMA is found below the 21 periods EMA and the two dynamic levels are at a distance to each other which indicates strong bearish momentum. The currency pair is receiving more pressure from the bears and this makes the price trading below the support level of $0.89 which may reduce the price to $0.87, $0.86, and $0.85 levels. In case the bulls defend the $0.87 level; the price may reverse and be confronted with the resistance level at $0.89, $0.90, and $0.91. The currency pair may change direction at $0.88 in 2021.

USDCHF weekly Chart Trend: Bearish

USDCHF is bearish in the weekly chart. Five weeks ago, the bears broke down the $0.90 support level and the price is declining towards the support level of $0.88. The bearish pressure is increasing after the breakout at the $0.90 support level on November 23. The former support level of $0.89 has turned to a resistance level. At the moment, the price has may break down the support level of $0.88 to target the $0.87 level.

USDCHF weekly chart, December 29

The two EMAs are well separated indicating an increase in the bears’ momentum and the trading below the two EMAs indicates an increase in the bearish momentum. The relative strength index period 14 is bending down below 40 levels to indicate a sell signal.