TECHNICAL ANALYSIS
On the daily chart, the USDCHF pair has undergone a significant retracement after its rapid ascent towards the 0.92 level. A substantial support area appears near the 0.90 mark, where multiple factors align. This zone includes the convergence of the prior swing level, the 50% Fibonacci retracement level, and a well-defined trendline. Buyers are likely to enter the market at this juncture, setting their stop-loss orders below the trendline to prepare for another upswing towards the 0.9442 resistance. Conversely, sellers will be monitoring for a breakdown below this support zone to potentially drive the pair even lower. Transitioning to the 4-hour chart, if there's a retracement before reaching the 0.90 support, sellers are anticipated to consider the descending trendline as a potential entry point. This trendline coincides with the intersection of the red 21-day moving average and the 50% Fibonacci retracement level, in addition to the broken upward trendline. Conversely, buyers will be looking for an upward breakout to strengthen their positions and aim for a rally towards the 0.9442 resistance. On the 1-hour chart, it becomes evident that the price is exhibiting divergence with the MACD indicator. Such divergence typically signals a loss of momentum and can precede pullbacks or reversals. In this instance, it could imply a pullback towards the trendline before another potential drop towards the 0.90 support. Alternatively, the divergence might extend towards the support zone, providing buyers with further conviction to prepare for an eventual rally. This analysis highlights the critical levels and potential entry points for both buyers and sellers as they navigate the USDCHF pair's price movements.
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