USDCHF Is Approaching a Potential Reversal Level

USDCHF Price Analysis – December 08

There is a high probability that the support level of $0.87 will be reached and if the bulls do not defend the level, the support level of $0.86 and $0.85 may be tested. In case it is defended by the bulls, the price may reverse and be exposed to the resistance level of $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 Long-term Trend: Bearish

The momentum of the bears is increasing daily and this corresponds to the declination of the USDCHF price. Price retest was carried out on November 30 to $0.90 price level. On the following day, a strong bearish candle emerges and this swallowed the previous day’s bullish candle. The price descends and penetrates the support level of $0.88. At the moment, the price is declining towards the support level of $0.87.

The price is trading below the support level of $0.88 at the moment. The two dynamic levels are separated and the 9-periods EMA has crossed the 21 periods EMA downside which connotes strong bearish momentum. There is a high probability that the support level of $0.87 will be reached and if the bulls do not defend the level, the support level of $0.86 and $0.85 may be tested. In case it is defended by the bulls, the price may reverse and be exposed to the resistance level of $0.89, $0.90, and $0.91.

USDCHF Medium-term Trend: Bearish

The bearish breakout at the $0.90 support level on November 23 continues to have an impact on the currency pair. In other words, USDCHF is bearish in the 4-hour chart. The price broke out at the support level of $0.90. Since then, the price has been moving down. The former support level of $0.89 has turned to a resistance level. At the moment, the price is struggling to break down the support level of $0.88.

The two EMAs are well separated indicating an increased momentum and the trading below the two EMAs indicate the bearish momentum. However, the relative strength index period 14 is bending up at 30 levels to indicate a buy signal.