USDCHF Drifts off Its Upward Course

USDCHF Price Analysis – January 25

USDCHF drifts off its upward course as it fails to keep up the fervency that has kept it moving upwards. Signs that the currency pair was losing it came in late December 2021 as the price forced itself through a consolidation point between its uptrend line and the 0.91570 support level. The market was able to recover from the next support line by New Year, using its signature candlestick engulfment pattern.

USDCHF Significant Levels

Resistance Levels: 0.93770, 0.93350, 0.92740
Support Levels: 0.90360, 0.91070, 0.91570

USDCHF Long Term Trend: Ranging

The market’s uptrend movement has been long coming since mid-2021. The price can be seen making wild bounces on the uptrend line. Notwithstanding, the price uptrend movement was making higher lows but erratic highs. This is due to a weekly resistance level at 0.93770, which has placed a limit on the market from above, thereby cooking up the pressure in between the uptrend line and itself.

This led to increased pressure on the trend line. The first signs of weakness on the part of the buyers came at the end of 2021 when the price thrust through a consolidation point. By New Year, the price recovered, only to fall short at 0.92740 and then drift off its upward course. Despite the currently renewed vigor of buyers, the Parabolic SAR (Stop and Reverse) still indicates a drop in the market with its dots above the daily candles.

USDCHF Short Term Trend: Uptrend

The 4-hour chart shows the market making a strong push upwards, breaking past the 0.91570 price level, and is currently negotiating the uptrend line. The buyers want to reclaim their position on the uptrend line. The EFI (Elders Force Index), which has been undulating around the zero level, now drifts upward as a show of buyers’ strength. We can expect the market to rise to 0.92190 and even higher, but with selling pressure persisting, the price could fall again below the trendline.

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