USD/CHF Price Analysis: Bears eye 0.8790 support confluence and US CB Consumer Confidence
|- USD/CHF takes offers to extend Friday’s retreat from seven-week high to print two-day losing streak.
- Upbeat oscillators, key support keeps Swiss Franc pair buyers hopeful despite latest U-turn from multi-month-old resistance line.
- Convergence of 50-DMA, rising trend line from mid-July appears a tough nut to crack for bears.
- US CB Consumer Confidence eyed for clear directions as Fed Powell’s speech highlighted data dependency for future policy moves.
USD/CHF remains on the back foot for the second consecutive day, down 0.12% intraday around 0.8825 amid the early Tuesday morning in Europe. In doing so, the Swiss Franc (CHF) pair stretches last week’s U-turn from a downward-sloping resistance line from March 08.
It’s worth noting that the broadly weaker US Dollar and the cautious mood ahead of the US Conference Board’s (CB) Consumer Confidence Index for August, expected at 116.2 versus the prior 117.00, exert downside pressure on the pair after it reversed from the key resistance line.
However, the upbeat RSI (14) line and the bullish MACD signals join the quote’s sustained trading beyond the 0.8790 support confluence to keep the buyers hopeful.
That said, the 50-DMA and a six-week-long rising trend line together constitute the 0.8790 hurdle toward the south.
In a case where the USD/CHF breaks the 0.8790 support, the odds of witnessing a quick slump towards refreshing the monthly low, currently around 0.8690, can’t be ruled out.
On the flip side, a clear upside break of the aforementioned multi-month-old resistance line, close to 0.8840 by the press time, needs validation from the monthly peak of 0.8865 and June’s low of 0.8901 to convince the USD/CHF pair buyers.
USD/CHF: Daily chart
Trend: Limited downside expected
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