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USDCHF H1(1 Hour) Chart Analysis – Strong Resistance Zone, Bearish Convergence, Parabolic Sar
On the H1 chart, the price which was moving higher reached a strong resistance zone where the psychological level 1.00 coincides. The price respected this zone and has bounced lower from this zone. Also, the price which was moving higher has created a bearish divergence between the first high that has formed at 1.00367 and the second high that has formed at 1.00498 based on the MACD indicator. The price then moved lower and broke below the last low at 0.99609 thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider these as evidences of bearish pressure. Generally, after a bearish convergence we may look for corrections and then further continuation lower. Currently, it looks like a correction is happening and in addition to this, based on the Parabolic Sar we could see that the dots are above the price which we may consider as yet another evidence favoring the bears. So everything looks good here for the bears and basically, I expect short term bearish moves to happen here after pullbacks until the strong resistance zone holds.
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