The USD/CHF currency pair, on the D1 chart, was in an upward path from early January until the 7th of March when a higher top was recorded at 1.01244. Demand overwhelmed supply at that point and the market started building downward momentum.
The price broke through the 15 and 34 Simple Moving Averages with the Momentum Oscillator breaking the zero baseline, both confirming a possible technical reversal in progress. This was further strengthened by the crossing of the 15 and 34 Simple Moving Averages, called a Death Cross.
A possible critical support level formed when a low was recorded at 0.98947 on the 20th of March. Buyers tried to push the market higher but it looks like supply is overcoming demand and a possible lower top was recorded at 0.99744 near the 15 Simple Moving Average.
If the USD/CHF currency pair breaks through the critical support level at 0.98947, then three possible price targets may be projected from there. Attaching the Fibonacci tool to the bottom of the possible reversal at 0.98947 and dragging it to the top of the pullback at 0.99744, the following targets may be calculated. The first target can be anticipated at 0.98454 (161 %). The second price target can be predicted at 0.97657 (261.8%) and the third and final target may be expected at 0.96368 (423.6%).
If the top at 0.99744 is however broken, the possible scenario is invalidated and will need to be re-evaluated.
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the USD/CHF currency pair on the D1 time-frame will remain bearish.
The price broke through the 15 and 34 Simple Moving Averages with the Momentum Oscillator breaking the zero baseline, both confirming a possible technical reversal in progress. This was further strengthened by the crossing of the 15 and 34 Simple Moving Averages, called a Death Cross.
A possible critical support level formed when a low was recorded at 0.98947 on the 20th of March. Buyers tried to push the market higher but it looks like supply is overcoming demand and a possible lower top was recorded at 0.99744 near the 15 Simple Moving Average.
If the USD/CHF currency pair breaks through the critical support level at 0.98947, then three possible price targets may be projected from there. Attaching the Fibonacci tool to the bottom of the possible reversal at 0.98947 and dragging it to the top of the pullback at 0.99744, the following targets may be calculated. The first target can be anticipated at 0.98454 (161 %). The second price target can be predicted at 0.97657 (261.8%) and the third and final target may be expected at 0.96368 (423.6%).
If the top at 0.99744 is however broken, the possible scenario is invalidated and will need to be re-evaluated.
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the USD/CHF currency pair on the D1 time-frame will remain bearish.
Comment:
This scenario was invalidated when the top at 0.99744 was broken and a new possible scenario will be posted.