The Bears Are Setting Eyes On Swissy

Contributor Image
Written By
Contributor Image
Written By
Tran Dai Phat
Tran Dai Phat, a Forex Educator at FXTM with a Bachelor's Degree in Investment, brings multiple years of financial market experience to the aid of aspiring traders everywhere. He conducts research on stocks, forex, and commodities, sharing his insights to empower traders and encourage the development of simple strategies for maximizing trading potential.
Updated

The Swissy on the 4-Hour Chart has been in a downtrend since 1 April 2021 when it registered the high price at 0.94718, followed by a series of lower tops and lower bottoms. On 7 April 2021, the Swissy recorded the low price of 0.92673.

Technicals

When applying Oscillator Analysis to the price chart, one can see that price is trading below the SMA 60 period Moving Average line, a fact which confirms the Swissy’s downward direction.

Furthermore, the Moving Average/Convergence Divergence (MACD) Oscillator is recording values below the zero line which hints to the bearish bias of financial instrument.

Additionally, the Relative Strength Index (RSI) Oscillator registers values in the oversold zone after an increase in sales and excess of net decline. All three technical indicators are in agreement with regards to the downward bias of the pair.

Fibonacci Targets

Three price targets may be calculated upon applying the Fibonacci tool to the price chart.

  • The first price target is estimated at 0.93239 (161.8%).
  • The second price target is seen at 0.92800 (261.8%).
  • The third price target is projected at 0.92089 (423.6%).

While the first target and the second have already been breached, the Swissy is currently trading below the downtrend line. The presence of the Bearish Hanging Man hints at a potential rally to the downside. Its current price is 1.38% below last week’s close after a sharp decline in price during a period of heavy selling.

Of course, supply and demand as well as the crowd sentiment will determine the future course of Swissy. Although the market is currently following a counter trend direction, this might just be a temporary correction, as long-term sentiment for the Swissy remains bearish.

For more information, please visit: FXTM

Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

FXTM is a top-rated forex and CFD broker established in 2011 and operating across 4 continents. The company is secure and regulated by leading authorities, including the FCA and CySEC. Offering 1000+ day trading markets and three account types, they cater to all levels of trader.