USD/CHF Price Analysis: Keeps bounce off yearly support around mid-0.8900s
|- USD/CHF snaps four-day downtrend but lacks upside momentum.
- Two-month-old falling trend line, 50-day EMA adds to the upside filters.
USD/CHF consolidates the latest losses around 0.8960, up 0.05% intraday, as European traders brace for Brussels’ bell on Thursday.
In doing so, the quote keeps the previous day’s U-turn from the lowest since February 17 even as the Momentum line struggles in the negative territory.
Hence, the pair’s upside momentum needs further strength, which in turn seeks a clear break of May 10 low of 0.8985 for confirmation.
It should, however, be noted that a downward sloping trend line from mid-April and 50-day EMA, respectively around 0.9030 and 0.9060, preceded by the 0.9000 threshold, also test the USD/CHF bulls.
Meanwhile, USD/CHF sellers have a tough task on hand, to break the 0.8925-15 support zone, before extending the south-run from April.
Also acting as the challenges for the pair bears, below 0.8915, are lows marked during February and late April, around 0.8870 and 0.8840 in that order.
USD/CHF daily chart
Trend: Bearish
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.