USDCHF bulls pose a bullish engulfment candlestick reversal pattern as they prepare to shake off downward pressure. The market has been trying to hold above the 0.91570 price level since it crashed to that level on November 30th, 2021. The struggle was long-drawn and USDCHF eventually succumbed to pressure and dropped to the next level at 0.91070. However, over the past two days, the bulls now pose a bullish engulfment pattern to recover above 0.91570.
USDCHF Significant Levels
Resistance Levels: 0.92740, 0.93770 Support Levels: 0.91570, 0.91070
USDCHF Long Term Trend: Bullish
The market’s movement over the past 7 months has been topsy-turvy. This is due to the alternating influence of the bulls and bears on the market, which tends to cause a sharp change in the market’s direction. Notable instances of these are found on the 8th of July, 6th of August, 10th, and 26th of November, all during last year. In most of these instances, the bullish or bearish engulfment candlestick pattern was employed.
Having dropped down to 0.91070, USDCHF is now employing a familiar trick to lift the market. Bulls pose a bullish engulfment candlestick pattern in which yesterday’s candlestick bounced up from the lower border of the Bollinger Band, which has now lifted the price back above 0.91570. The Stochastic Oscillator shows that there is more upward movement to come as its lines have crossed upward from the bearish position.
USDCHF Short Term Trend: Bullish
The 4-hour candlesticks have bounced off the lower band of the Bollinger Band indicator and have climbed above its middle line to reach the upper band. The market is now stalling below the upper band as it seeks a way to push further upward. The Stochastic Oscillator shows the price at the overbought border and we could see a pullback before USDCHF pushes further towards 0.92190.
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