USDCHF Price Analysis – August 20
There is a tendency for the USDCHF price to increase towards the supply level of $0.99 provided the Bulls gain more pressure. In case the Bears continue to defend the $0.98 level bearish movement may continue.
Supply levels: $0.98, $0.99, $1.00
Demand levels: $0.97, $0.95, $0.94
USDCHF Long-term trend: Bullish
On the long-term outlook, USDCHF is bullish; The Bears dominated the market last two weeks. There was a fake breakout on August 12 at the demand level of $0.97. The Bulls reacted against the decrease in price; the bullish engulfing candle was produced at the demand level of $0.97. This bullish engulfing candle triggered the increase in the price of USDCHF and the price moved towards the supply level of $0.98. The price equally had a fake breakout at the level. Today, another massive daily bearish candle emerged and the price redirected towards the south which may serve as a pullback.
The price is breaking up the 21 periods EMA in which 50 periods EMA is above the two, which connotes increase in the Bulls’ momentum. There is a tendency for the USDCHF price to increase towards the supply level of $0.99 provided the Bulls gain more pressure. In case the Bears continue to defend the $0.98 level bearish movement may continue. However, Stochastic Oscillator period 14 is at 30 levels with the signal lines pointing to the north which connotes buy signal.
USDCHF Medium-term Trend: Bullish
USDCHF is Bullish on the short-term outlook. The currency pair continues in its bullish movement on the 4- hour chart and it has reached the potential reversal level of $0.98. The price action wants to complete the formation of “M” shaped pattern, a continuation of the Bears’ momentum may lead to the completion of the “M” shape and this may drop the price at the demand level of $0.97.
The price is crossing over the two EMAs downside which will establish a bearish momentum in the USDCHF market. The Stochastic Oscillator period 14 is at 50 levels with the signal lines pointing down to indicate a sell signal.
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