Swissy Bears Are Eyeing More Decline

by at FXTM.
Tran Dai Phat
Tran Dai Phat

The USDCHF currency pair on the Daily Chart has been in a downtrend since 25 September 2020 when it registered the high price at 0.92954, followed by a series of lower tops and bottoms.

On 21 October 2020, the Swissy recorded the low price of 0.90296. 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.

Technical Analysis

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 below the fifty line which indicates negative sentiment.

All three technical indicators are in agreement with regards to the downward bias of the pair.

Fibonacci

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

  • The first price target is estimated at 0.90382 (161.8%).
  • The second price target is seen at 0.89602 (261.8%).
  • The third price target is projected at 0.88340 (423.6%).

While the first target has already been breached, the Swissy is currently trading below the downtrend line. Its current price is 0.97% below last week’s close after a sharp decline during a period of heavy selling.

The presence of the Bearish Evening Star pattern hints at a potential rally to the downside. Of course, supply and demand as well as the crowd sentiment will determine the future course of Swissy.

USDCHF Daily 22nd

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