USDCHF Price Analysis – May 22
Should the Bulls increase their momentum and break up the supply level of $1.01, then, the price may target $1.02 level. In case the Bears defend the $1.01 level, the bearish trend may continue.
Supply levels: $1.01, $1.02, $1.04
Demand levels: $1.00, $0.99, $0.98
USDCHF Long-term trend: Ranging
On the long-term outlook, USDCHF is on the ranging mode. The currency pair was bearish last week. It descended from the high of $1.02 to the demand level of $1.00 with the formation of a strong bearish engulfing candle. The Bears lost the momentum and the price pulled back to retest the broken level of $1.01 supply level. USDCHF is currently consolidating at $1.01 level.
The currency pair is found trading in between the 21 periods EMA and 50 periods EMA while the two EMAs flat horizontally at the level showing no direction which indicates that consolidation is ongoing in the USDCHF market
However, the Relative Strength Index period 14 is at 50 levels and the signal line is flat horizontally at the level to indicate ongoing consolidation in the USDCHF market. Should the Bulls increase their momentum and break up the supply level of $1.01, then, the price may target $1.02 level. In case the Bears defend the $1.01 level, the bearish trend may continue.
USDCHF Short-term Trend: Ranging
USDCHF is ranging in the short-term outlook. USDCHF bottomed at $1.00 on May 13 and the Bears were unable to break down the demand level of $1.00 level. The price reversed with the aid of Bulls’ pressure. The pair ranged towards $1.01 price level. The Bulls’ momentum also becoming weak and the price is consolidating at the level.
The two EMAs are flat horizontally at the level and the pair hovering over the two EMAs. Nevertheless, relative strength index period 14 is at 60 levels bending down to connotes sell signal.
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