USDCHF is testing September support level at 0.9230, facing downside pressure. Similarly, USDJPY is consolidating near 109.70, establishing a range-bound pattern. Let’s delve deeper into the technical analysis of both currency pairs.
USDCHF Technical Analysis:
– USDCHF has been steadily declining since reaching its recent high in August.
– The pair is currently trading near the key support level of 0.9230, which marks the September low.
– A break below this support could lead to further losses towards the next support level at 0.9180.
– The Relative Strength Index (RSI) is showing a bearish divergence, indicating weakening upward momentum.
– Traders should watch for a potential breakout below 0.9230 to confirm a bearish continuation towards lower levels.
USDJPY Technical Analysis:
– USDJPY has been moving within a tight range between 109.50 and 109.90 over the past few sessions.
– The pair is currently consolidating near the upper end of the range, showing indecision among traders.
– A break above 109.90 could signal a bullish breakout towards the next resistance level at 110.30.
– On the downside, a break below 109.50 could lead to a retest of the lower support zone near 109.20.
– The Moving Average Convergence Divergence (MACD) indicator is flat, further confirming the range-bound movement.
Overall, USDCHF is challenging the September support level, while USDJPY is consolidating within a narrow range. Traders should monitor key support and resistance levels along with technical indicators to gauge the future price direction of these currency pairs. It is crucial to stay nimble and adapt to changing market conditions to make informed trading decisions in the forex market.
