USDCHF Is Dropping as It Keeps Tapering in a Triangle Pattern

USDCHF Price Analysis – February 1

USDCHF is dropping as it continues tapering through a triangle pattern. The key levels have been influencing the market’s movement within the tapering movement. The 0.92570 pressed the market downward and ensured a triple bounce of the price on the lower border of the triangle before it broke through with momentum. The market has reached 0.93410, which is also the upper border of the triangle. USDCHF is now dropping again.

USDCHF Critical Levels

Resistance Levels: 0.94640, 0.93410, 0.92570
Support Levels: 0.91870, 0.91100, 0.89960

USDCHF Long Term Trend: Bearish

The tapering movement began at the beginning of the second quarter of 2021 after the price was rejected at 0.94640. This led to a price drop below the 0.89960 significant level. From here, the price reverses. A strong resistance exists at 0.92570, where the price was rejected severally. But the market kept making higher lows, which helped it break through the price level to a higher significant level.

Since then, the 0.92570 level has been breached three times as prices taper continually in the triangle pattern. Currently, the price is dropping again after hitting the confluence of the upper border and 0.93410. The Stochastic Oscillator shows a current drop in the market. The Relative Strength Index line is also about to drop into bearish territory. There are equal opportunities to breakout upward or downward, but the 0.92570 resistance level aids a downward breakout.

USDCHF Short Term Trend: Bearish

On the 4-hour chart, the Stochastic Oscillator has dropped deep into the oversold region while the Relative Strength Index is approaching the oversold border. The market is all bearish at the moment. If the price fails to bounce off the lower border of the triangle, it could lead to a breakout to the underside of the triangle. Else, the price will try to reach for the upper border of the triangle again.

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