USD/CHF Price Analysis: Bears attack two-month-old support line below 0.9200
|- USD/CHF remains pressured around the lowest levels in three weeks.
- Failure to cross 61.8% Fibonacci retracement during previous bounce off the key support line joins firmer Momentum to favor sellers.
- 50-SMA, two-week-old descending trend line offers strong resistance near 0.9210.
USD/CHF remains on the back foot around 0.9175, after refreshing the multi-day low amid early Tuesday.
In doing so, the Swiss currency (CHF) pair retests an upward sloping trend line from early November, keeping the last week’s pullback from 61.8% Fibonacci retracement (Fibo.) of November’s upside.
Given the upbeat Momentum line and the quote’s failures to cross the key Fibo. level favor USD/CHF sellers to aim for the 78.2% Fibonacci retracement level of 0.9145. During the fall, the monthly low near 0.9165 and November 30 bottom of 0.9157 may offer intermediate halts.
If at all the USD/CHF bears refrain to step back from 0.9145, the previous monthly low of 0.9088 will be in focus.
Meanwhile, the 61.8% Fibonacci retracement around 0.9200 guards the quote’s short-term upside.
Following that, a convergence of the 50-SMA and descending trend line from mid-December challenges the USD/CHF bulls near 0.9210.
USD/CHF: Four-hour chart
Trend: Further weakness expected
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