USD/CHF Price Analysis: Fortnight-old support defends buyers above 0.8950
|- USD/CHF consolidates early Asian session losses after three-day losing streak.
- Downbeat Momentum line, falling channel keep sellers hopeful.
- 100-SMA, weekly top add to the upside filters.
USD/CHF teases weekly descending channel breakout while picking up bids to 0.8970 as European traders prepare for the bell.
The Swiss currency pair dropped during the initial Asian trading before bouncing off an ascending support line from May 25.
Given the sluggish Momentum line and strong resistance near 0.8970, USD/CHF is likely to witness a pullback towards revisiting the stated support near 0.8964.
It should, however, be noted that the downside break of 0.8965 will have a bumpy road to the south as the stated channel’s lower line and monthly low, respectively around 0.8950 and 0.8940, will test the sellers afterward.
Meanwhile, an upside clearance of 0.8970 isn’t a free pass to the USD/CHF buyers as 100-SMA near 0.8985 and the monthly peak surrounding 0.9010 will act as the tough resistances.
During the quote’s run-up beyond 0.9010, 0.9030 can offer an intermediate halt before highlighting the 0.9050-55 levels for the bulls.
USD/CHF four-hour chart
Trend: Bearish
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