USD/CHF Price Analysis: Sellers attack 0.8850 with eyes on seven-week-old horizontal support
|- USD/CHF sellers catch a breather after refreshing two week low.
- Downside break of 21-day SMA, descending RSI line favor sellers.
- 50-day SMA, monthly top offer a tough nut to crack for buyers.
Having recently dropped to the lowest since January 08, USD/CHF seesaws around 0.8850 during early Friday’s trading. The Swiss currency pair refreshed a multi-day low after breaking 21-day SMA. The downside move also takes support from receding RSI.
As a result, USD/CHF sellers seem to target a retest of the horizontal support comprising multiple levels since December 17, around 0.8820.
Although the pair’s weakness past-0.8820 becomes less likely, any further declines will not hesitate to break the 0.8800 while challenging the monthly low of 0.8857.
Alternatively, an upside clearance of 21-day SMA, at 0.8860 now, will aim for the 0.8900 round-figure ahead of challenging December’s top surrounding 0.8920.
However, a confluence of 50-day SMA and the monthly peak close to 0.8925-30 will be a strong resistance for the USD/CHF buyers to watch afterward.
USD/CHF daily chart
Trend: Further weakness expected
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.