USD/CHF Price Analysis: Buyers seek validation above 0.9220
|- USD/CHF extends the previous session’s momentum and prints minute gains on Tuesday.
- The formation of multiple tops near the current level makes it’s a crucial level to trade.
- MACD trades above midline indicates the underlying bullish sentiment.
USD/CHF trades cautiously on Tuesday in the initial Asian trading hours. The pair confides in a narrow trade band of less than 10-pips movement.
At the time of writing, USD/CHF is trading at 0.9224, up 0.02% for the day.
USD/CHF daily chart
On the daily chart, the USD/CHF pair has been facing some strong resistance near 0.9240, the high touched in the previous session and on August 13. This constitutes a “ double top” formation, which is a bearish reversal pattern.
The sluggish price movement in today’s session suggests that bulls find it difficult to break the mentioned level. The being said, if the price manages to moves higher, it could immediately test the previous day’s high of 0.9241.
The Moving Average Convergence Divergence (MACD) trades just above the midline with a bullish stance. Any uptick in the MACD would encourage the bulls to take over the levels last seen in July and recapture the high made on 8 July at 0.9264.
Furthermore, USD/CHF bulls would likely to testify the 0.9285 horizontal resistance level. If the price starts moving lower, it could drop back to the 0.9200 psychological level.
Next, USD/CHF bears would seek the 23.6% Fibonacci retracement level at 0.9185 followed by the low made on September 10 at 0.9150.
USD/CHF additional levels
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