USDCHF Price: Will It Decline to Big Level?

USDCHF Price Analysis – October 20

Should the bears’ pressure increase to break down the support level at $0.90, the price may decrease further to $0.89 and $0.86. In case the support level at $0.90 holds, there will be a bullish reversal and it may place the price at $0.92, further increase may reach $0.93 and $0.94 levels.

Key Levels:

Supply levels: $0.92, $0.93, $0.94
Demand levels: $0.90, $0.89, $0.86

USDCHF Long-term Trend: Bearish

USDCHF is bearish in the daily chart. The currency pair tested the support level at $0.90 on 09 October with strong bearish momentum. The bulls defend the mentioned support level and the price bounces off the level, increases to retest the dynamic resistance levels. The pair consolidated for a few days. On 19 October, the bears increase their momentum and the currency pair descends towards the $0.90 second time. Today, another daily bearish candle emerges testing the support level at $0.90.

USDCHF is trading below the 9 periods EMA and 21 periods EMA at distance indicating that the bearish pressure is increasing. Should the bears’ pressure increase to break down the support level at $0.90, the price may decrease further to $0.89 and $0.86. In case the support level at $0.90 holds, there will be a bullish reversal and it may place the price at $0.92, further increase may reach $0.93 and $0.94 levels.

USDCHF Medium-term Trend: Bearish

The bearish momentum is increasing as the US dollar is getting weak. The price is penetrating the support level of $0.90. Further decrease in price is highly envisaged. The price may reach a low of $0.89 provided the strength of the US dollar remains weak.

It was last week the price closed above the dynamic resistance. Today, the Price is trading below the 9 periods EMA and the 21 periods EMA while the fast EMA (9) is below the slow EMA (21). The relative strength index period 14 is strongly pointing down at 30 levels which indicates a strong sell signal.