USDCHF Sustains Mild Gains but Bulls Remain Capped at the 0.8920 Zone

USDCHF Sustains Mild Gains but Bulls Remain Capped at the 0.8920 Zone

USDCHF Price Analysis – January 29

After it rebounds from lows, the USDCHF pair has continued to attempt to break past the 0.8920 troughs while sustaining mild gains as buyers push stay capped. Moving on, a lack of major data and traders’ attention on equity news will be the key to determine near-term market direction.

Key Levels
Resistance Levels: 0.9187, 0.8998, 0.8920
Support Levels: 0.8757, 0.8639, 0.8550

USDCHF Long term Trend: Ranging
On the daily chart, USDCHF support at 0.8858 stays intact and if the pair attempts to breach beneath that level, it may open the path for a test of lower levels. The pair continues to consolidate in a narrow trading range between 0.8757 and 0.8920 levels, where it has been holding for more than 2 weeks.

In a broader context, the decline from 1.0231 is seen as the third phase of the trend from 1.0342 (high). However, a strong breakout of the 0.9304 resistance level would be an early sign of a trend reversal and would draw attention to the key 0.9901 resistance level for a re-test.

USDCHF Short term Trend: Ranging
On the shorter time frame, the intraday bias in USDCHF stays mildly on the upside at this point with hopes of a rebound to the resistance at 0.8920 level. On the flip side, the present trend may aim for a 61.8% forecast of 0.9901 to 0.8998 level from 0.9304 at 0.8757 level next.

However, if the rebound comes through to the upside, a break of 0.8920 minor resistance level may alter the downside bias neutral and bring a rebound immediately. Further weakness beneath the 0.8900 level may continue due to the lack of any significant levels of support in the interim.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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Author : Azeez Mustapha

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Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.