USDCHF Price Is Testing a Potential Bullish Reversal Level

 USDCHF Price Analysis – January 05

Should the bears can push the price below the support level of $0.87, then, $0.86 and $0.85 level may be tested. In case the bulls defend the $0.87 level; the price may reverse and be confronted with the resistance level at $0.88, $0.89, and $0.90.

Key Levels:

Supply levels: $0.88, $0.89, $0.90

Demand levels: $0.87, $0.86, $0.85

USDCHF Long-term Trend: Bearish

USDCHF remains under the control of the bears in the long-term outlook. The price has penetrated the support level of $0.88 downside. Price retracement was carried out on December 18 and the resistance level of $0.88 was tested. The price could not break up the confluence at the $0.88 level. A strong bearish candle emerges and the price returns to a downtrend. At the moment, the price is testing the support level of $0.87.

USDCHF daily chart, January 05

Should the bears can push the price below the support level of $0.87, then, $0.86 and $0.85 level may be tested. In case the bulls defend the $0.87 level; the price may reverse and be confronted with the resistance level at $0.88, $0.89, and $0.90.The two dynamic levels are at a distance to each other and the 9-periods EMA is found below the 21 periods EMA which indicates strong bearish momentum.

USDCHF Medium-term Trend: Bearish

USDCHF is bearish in the 4-hour chart and the bearish pressure is increasing. The price seems to form a double bottom chart pattern in the medium term at the $0.87 level. There is a tendency for the price to reverse at the mentioned level. At the moment, the bulls are struggling to defend the support level of $0.87.

USDCHF 4 hour chart, January 05

USDCHF is trading below the two EMAs which are fairly separated indicating a reduction in the bears’ momentum and the trading below the 9 and 21 EMAs indicates the bearish momentum. The relative strength index period 14 is bending down at 40 levels to indicate a sell signal.