USD/CHF Price Analysis: Rejected at 0.9650, sellers in control
|- USD/CHF's minor bounce seems to have run out of steam at 0.9650.
- The pair is on the defensive and risks falling below 0.96, as per the weekly chart.
USD/CHF is currently trading at 0.9640, having picked up a bid at 0.9630 in early Asia and faced rejection at 0.9650 an hour ago.
The hourly chart MACD histogram has crossed above zero, indicating a bearish-to-bullish trend change. The hourly RSI has also bounced from the oversold or below-30 region.
Further, the futures on the S&P 500 are flashing green, indicating potential risk reset.
So, a corrective bounce to levels above 0.6850 cannot be ruled out, but will likely be short-lived, as longer duration charts are biased bearish.
Notably, the pair created a big bearish engulfing candle last week, signaling an end of a corrective bounce from the Jan. 6 low of 0.9613 and a resumption of the sell-off from the high of 1.0023 observed in November.
The last week's candle also closed below key support at 0.9660 (October low).
The odds, therefore, appear stacked in favor of a slide to levels below 0.96. The outlook, as per the weekly chart would turn bullish if and when the pair finds acceptance above the last week's high of 0.9767.
Weekly chart
Trend: Bearish
Technical levels
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.