USDCHF Price Analysis – September 15
The penetration of the demand level at $0.90 will make the price to decline to $0.89 and $0.86price levels. The inability to break down the $0.90 price level may result in an upward movement towards the resistance level at $0.92, $0.93, and $0.94.
Supply levels:, $0.92, $0.93, $0.94
Demand levels: $0.90, $0.89, $0.86
USDCHF Long-term Trend: Bearish
USDCHF is under the control of the sellers; the pair is bearish in the daily chart. Last week, the currency pair was bullish and the bulls were pushing it towards the resistance level at $0.92. The sellers defend the resistance level of $0.92 with the formation of a strong bearish candle that engulfs the previous daily bullish candle. This is exactly price actions that indicate that the sellers are ready to dominate the market. The price decline and break down the dynamic support levels.
USDCHF has penetrated the two EMAS downside and the 9 periods EMA has crossed the 21 periods EMA as a sign of downward movement. The price is trading below the two EMAs to the demand level of $0.90. The penetration of the demand level at $0.90 will make the price to decline to $0.89 and $0.86price levels. The inability to break down the $0.90 price level may result in an upward movement towards the resistance level at $0.92, $0.93, and $0.94. The relative strength indicator is below 50 levels with the signal line bending towards the south which indicates a sell signal.
USDCHF Medium-term Trend: Bearish
The bulls’ momentum was exhausted at $0.92 zone; this is noticed when the 4-hour candle began to form Doji candles consecutively. The price decreases when the bearish engulfing candle emerges. The dynamic support levels could not hold the price, and it declines to test the support level of $0.90.
The downtrend may continue as the relative strength index indicator period 14 is bending downside at 40 levels and the USDCHF is trading below the 9 periods EMA and 21 periods EMA which connotes sell signal. Traders can place sell Stop at $0.90556, Stop Loss at $0.90782 and, Take Profit at $0.89974.