USD/CHF Price Analysis: Bears remain hopeful of refreshing monthly low under 0.9500
|- USD/CHF fades corrective pullback from one-week bottom marked the previous day.
- Sustained break of short-term ascending trend line, bearish MACD signals favor sellers.
- Bulls need validation from the 200-SMA to retake control.
USD/CHF remains depressed around 0.9550 amid a sluggish Asian session on Tuesday. Even so, the sellers remain hopeful while tracing a downside break of a one-week-old ascending trend line.
In addition to the weekly support break, the bearish MACD signals and the pair’s sustained trading below the 200-SMA also favor USD/CHF sellers.
That said, the pair is all set to challenge the yearly low surrounding 0.9470, with the 0.9500 threshold likely acting as an intermediate halt.
In a case where USD/CHF bears dominate past 0.9470, the 61.8% Fibonacci Expansion (FE) of July 14 to August 03 moves, near 0.9390, will be in focus.
Alternatively, the previous support line from August 02, close to 0.9565 at the latest, guards the quote’s recovery moves.
However, major attention will be given to the 200-SMA level of 0.9650 as a successful break above the same could enable USD/CHF bulls to aim for the late July swing high around 0.9740.
Overall, USD/CHF is likely to remain on the bear’s radar despite the latest inaction.
USD/CHF: Four-hour chart
Trend: Further downside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.