USD/CHF Price Analysis: Sellers challenge 38.2% Fibonacci retracement
|- USD/CHF halts the previous session’s losses and consolidates on Tuesday.
- More pain for the pair if price breaks 0.9250.
- MACD trades holds onto the overbought zone with receding upside momentum.
USD/CHF trades cautiously on Tuesday in the initial Asian trading hours. The pair confides in a narrow trade band of less than 10-pips movement. At the time of writing, USD/CHF is trading at 0.9248, down 0.02% for the day.
USD/CHF daily chart
On the daily chart, after testing the five-month high near 0.9368, the USD/CHF pair failed to preserve the momentum and touched the low of 0.9230 on Monday. Now, the pair is hovering in a limiting trading range. The sluggish price movement in today’s session suggests that bulls find it difficult to move in an upward direction. Furthermore, the price trades near the 21-day Simple Moving Average (SMA) at 0.9250.
Having said that, if the price sustains below the intraday low, it could immediately test the 38.2% Fibonacci retracement level, which extends from the low of 0.9018 at 0.9225.
The Moving Average Convergence Divergence (MACD) trades in the overbought zone with stretched buying conditions. Any downtick in the MACD would encourage the bears to take over the low made on September 16 at 0.9193. Furthermore, USD/CHF bears would likely testify the 0.9150 horizontal support level
Alternatively, if the price starts moving higher it could move back to the 23.6% Fibonacci retracement level at 0.9275 followed by the psychological 0.9300 mark. Next, USD/CHF bulls would seek the high of September 29 at 0.9355.
USD/CHF additional 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.