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FxWirePro: BCH/USD fails at 55-EMA, break below 21-EMA at 794 raises scope for further weakness

  • BCH/USD is extending weakness for the 3rd straight session, cloud weighs on the upside.
     
  • The pair is trading 1.62% lower on the day at 762, after hitting session's low at 735.
     
  • After a brief consolidation price action seems to have resumed downside.
     
  • The pair was unable to clear stiff resistance at 55-EMA and we see meaningful upside only on break above.
     
  • Break below 21-EMA has now opened up further downside for the pair.
     
  • Next major support lies at 675 (trendline). Break below will see major weakness. 

Support levels - 675 (trendline), 650 (June 28 low), 600 (Mar 6 low)

Resistance levels - 776 (cloud), 793 (21-EMA), 801 (5-DMA), 839 (55-EMA)

Recommendation: Stay short on upticks, target 675

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -6.66406 (Neutral) at 1015 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
 

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