USD/CHF Technical Analysis: 5-week-old triangle can limit declines below 200-bar SMA
|- USD/CHF fails to extend uptick beyond 200-bar SMA, 50% Fibonacci retracement.
- The symmetrical triangle continues to favor sideways momentum.
The USD/CHF pair is bearish after failing to break 200-bar SMA and retracing 50% Fibonacci. That said, a month-old symmetrical triangle could restrict the pair’s near-term moves. The quote takes the rounds to 0.9910 by the press time of the pre-European session on Thursday.
Given the quote’s latest slip beneath key technical levels, prices are likely to revisit the support line of the five-week-old symmetrical triangle formation, at 0.9870. A break of this level will open the doors for the additional pair weakness towards October month low near 0.9835 and the September bottom close to 0.9800.
On the contrary, 200-bar Simple Moving Average (SMA) around 0.9920 and 50% Fibonacci retracement level of October month declines, at 0.9935, could keep buyers await.
In a case of pair’s rise past-0.9935, 61.8% Fibonacci retracement and the triangle’s resistance can question bulls around 0.9955 and 0.9975 respectively. Though, a sustained run-up past-0.975 enables the optimists to aim for 1.0000 and 1.0030.
USD/CHF 4-hour chart
Trend: Sideways
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.