USD/CHF Price Analysis: Retreats from monthly high below 0.9100 within rising wedge
|- USD/CHF renews intraday low while reversing from six-week high.
- U-turn from resistance line of rising wedge bearish pattern tease sellers despite upbeat oscillators.
- 50-DMA adds strength to 0.9000 support confluence, a break of which could welcome Swiss Franc buyers.
USD/CHF takes offers to refresh the intraday low near 0.9040 as it prints the first daily loss in four during early Friday. In doing so, the Swiss Franc pair retreats from the resistance line of a three-week-old rising wedge bearish chart formation.
It’s worth noting, however, that the MACD indicator flashes bullish signals and the RSI (14) line is also above the 50.0 level, which in turn suggests the USD/CHF pair’s bullish momentum strength and keeps the bear’s off the table.
Also challenging the USD/CHF sellers is the 0.9000 support confluence comprising the 50-DMA and bottom line of the aforementioned wedge.
In a case where the USD/CHF price manages to provide a daily close below the 0.9000 mark, it becomes theoretically vulnerable to renewing the yearly low by dropping to the 0.8750 mark.
That said, the multiple levels around 0.8860-50 and the monthly low of bear 0.8820 may prod the sellers.
Meanwhile, the current place of the stated rising wedge’s top line, near 0.9075, precedes the 0.9100 round figure and April 10 peak of around 0.9115 to challenge the USD/CHF buyers.
Following that, a run-up towards the 61.8% Fibonacci retracement level of March-May downside near 0.9205 can’t be ruled out.
USD/CHF: Daily chart
Trend: Pullback expected
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