USDCHF SIGNAL : USDCHF Price Analysis Double Top supports bearish reversal, 0.9750s key demand zone
- A formation of Double Top has displayed a decline in buying interest at elevated levels.
- Bear cross, represented by the 20- and 50-EMAs signal more downside ahead.
- The RSI (14) has shifted into the bearish range of 20.00-40.00.
USDCHF SIGNAL : The USD/CHF pair is declining in the Asian session following the footprints of the US dollar index (DXY). The asset is on the verge of dropping below Friday’s low at 0.9756. A slippage below the same will bring significant offers on the counter.
A Double Top formation on an hourly scale is signaling a bearish reversal. The asset witnessed a steep fall after failing to sustain above Tuesday’s high at 0.9859. The above-mentioned chart pattern indicates lower buying interest at elevated levels. The formation of the selling tail has strengthened the formation of the chart pattern.
The downside move elevated on a bear cross, represented by the 20-and 50-period Exponential Moving Averages (EMAs) near 0.9820, which adds to the downside filters.
USDCHF SIGNAL : Meanwhile, the Relative Strength Index (RSI) has shifted into the bearish range of 20.00-40.00, which signals more pain ahead.
A decisive downside below the demand zone placed in a 0.9750-0.9758 range will drag the asset towards July 5 high at 0.9705. A breach of the latter will expose the asset to more downside towards July 1 high at 0.9642.
Alternatively, the greenback bulls could defend the double top formation after violation of Wednesday’s high at 0.9827. This will drive the asset towards Thursday’s high at 0.9886, followed by psychological resistance at 1.0000.
Confuse Which Broker is best ? , Here you can find the best regulated broker