USDCHF Price Analysis – July 02
Should the Bears increase their pressure and break down the $0.98 level, the price may target the previous low at $0.97. In case the Bulls defend the $0.98 price level, the trend may change.
Supply levels: $0.98, $0.99, $0.98
Demand levels: $0.97, $0.96, $0.95
USDCHF Long-term trend: Bearish
USDCHF is bearish on the long-term outlook. The currency pair bottomed at the demand level of $0.97 on June 24 under the Bears’ pressure. The Bears’ momentum could not break down the demand level of $0.97. A bullish reversal candle pattern called “Tweezer Bottom” formed at the same level. USDCHF price increased broke the barrier at $0.98 and the bullish momentum extended towards the $0.99 level. The increase in price was resisted at the dynamic resistance level of 50 periods EMA yesterday. Today, a bearish candle emerged at the dynamic resistance level which is returning the price back to $0.98 level.
The distance between the 21 periods EMA and 50 periods EMA is increasing as a sign of an increase in bearish momentum. USDCHF price is trading below the two EMAs. The stochastic Oscillator period 14 is below 50 levels with the signal lines pointing up to indicate a buy signal. Should the Bears increase their pressure and break down the $0.98 level, the price may target the previous low at $0.97. In case the Bulls defend the $0.98 price level, the trend may change.
USDCHF Medium-term Trend: Bullish
USDCHF is Bullish in the short-term outlook. On the 4-hour chart, the pair was bullish last week. The barrier at $0.98 level was broken and the two EMAs were penetrated, the price rallied towards $0.99 but later interrupted by the Bears at the upper trend line of the descending channel with the formation of the bearish engulfing candle.
The Stochastic Oscillator period 14 is above 80 levels (overbought level) with the signal lines pointing down to indicates sell signal.
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