HubuFX
HubuFX Representative
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USDCHF Analysis: Bearish Trend and Potential Price Correction
The USDCHF currency pair is currently trading sideways between the lower low at 0.8567 and the lower high at 0.8631. The trend direction is strongly bearish in favor of the Swiss franc, with the MACD signaling an enormous divergence. Since the price action does not show strength in rising, it is likely that we will see a sideways trend and a correction to upper levels. If the price remains stable above 0.8567, it may lead to a price correction at higher levels around the 23.6 Fibonacci retracement level at 0.8706.
On the other hand, if the minor support at 0.8567 breaks, the bearish bias will probably resume. The next supply area is located approximately 300 pips away, around 0.8293. In this scenario, it is possible that the downtrend may continue in the upcoming days.
The USDCHF currency pair is currently trading sideways between the lower low at 0.8567 and the lower high at 0.8631. The trend direction is strongly bearish in favor of the Swiss franc, with the MACD signaling an enormous divergence. Since the price action does not show strength in rising, it is likely that we will see a sideways trend and a correction to upper levels. If the price remains stable above 0.8567, it may lead to a price correction at higher levels around the 23.6 Fibonacci retracement level at 0.8706.
On the other hand, if the minor support at 0.8567 breaks, the bearish bias will probably resume. The next supply area is located approximately 300 pips away, around 0.8293. In this scenario, it is possible that the downtrend may continue in the upcoming days.
What is MACD Divergence?
In forex trading, divergence refers to a situation where the price of a currency pair is moving in the opposite direction of a technical indicator, such as the MACD or RSI. This can signal an imbalance between price and the oscillator, which may indicate an impending directional change in price. There are two types of divergences: regular divergence and hidden divergence. Each type of divergence can contain either a bullish or bearish bias.