USD/CHF D1 – Bears might be moving in.

The USD/CHF currency pair, on the D1 time-frame, was in an upward trend until 3rd of October when a higher top was recorded at 1.00278. Supply overwhelmed demand and the upward move was negated.

After the high at 1.00278, the price broke through the 15 and 34 Simple Moving Averages, the Momentum Oscillator broke through the zero baseline into bearish terrain and there was a crossing of the 15 and 34 Simple Moving Averages, called a Death Cross. Combined with a Three Black Crows Candlestick pattern, this confirmed a possible technical price reversal or early stages of a possible new trend.

A likely critical support level formed when a lower bottom was recorded at 0.98369 on the 18th of October. Buyers tried to push the market higher but a possible resistance level that was formed on the 28th of October at 0.99698 could not be breached and more sellers entered the market.

If the USD/CHF breaks through the critical support level at 0.98369, then three possible price targets may be projected from there. Attaching the Fibonacci tool to the lower bottom at 0.98369 and dragging it to the possible resistance level at 0.99698, the following targets may be calculated. The first target can be anticipated at 0.97548 (161 %). The second price target can be predicted at 0.96219 (261.8%) and the third and final target may be expected at 0.94069 (423.6%).

If the resistance level at 0.99698 is broken, the 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.

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