USDCHF Price May Experience a Bullish Reverse at $0.87 Support Level

 USDCHF Price Analysis – December 23

The ability to break up the $0.88 level and the daily bullish candle close above the level will make the price to increase to $0.89 and $0.90. Failure to break up the $0.88 may leads to continuation of the bearish trend in which the price may be confronted with the barriers at $0.87, $0.86 and $0.85 support levels.

Key Levels:

Supply levels: $0.88, $0.89, $0.90

Demand levels: $0.87, $0.86, $0.85

USDCHF Long-term Trend: Bearish

USDCHF is bearish in the long-term outlook. The bearish momentum is getting weak and that is why the price action is forming short daily bearish candles towards the support level of $0.87. The price has penetrated the support level of $0.88 downside. The bulls are increasing their momentum gradually with the formation of bullish candles that makes the price to penetrate the 9 periods EMA upside. The price is currently testing the resistance level of $0.88.

USDCHF daily chart, December 23

The 9 periods EMA has been penetrated upside and it is targeting 21 periods EMA to establish the changing of the momentum from the bears to the bulls. The bullish pressure is increasing gradually as the price is testing the resistance level of $0.88. The ability to break up the $0.88 level and the daily bullish candle close above the level will make the price to increase to $0.89 and $0.90. Failure to break up the $0.88 may leads to continuation of the bearish trend in which the price may be confronted with the barriers at $0.87, $0.86 and $0.85 support levels.

USDCHF Medium-term Trend: Bullish

USDCHF is bullish in the 4-hour chart. The currency pair was bearish for more than two weeks. The bearish momentum has helped the price reduced to $0.87 price level. The trend is about to change as the bulls are increasing their momentum gradually. Once the resistance level is penetrated the resistance level of $0.89 is the target.

USDCHF 4 hour chart, December 23

The 9 periods EMAs is crossing the 21 periods EMA upside and USDCHF is trading above the two EMAs indicating an increase in the bulls’ momentum. The relative strength index period 14 is bending up at 60 levels to indicate a buy signal.