USD/CHF technical analysis: 50% Fibo. limits upside to 0.9835/37 resistance-confluence
|- USD/CHF seesaws near two-week high amid overbought RSI conditions.
- A confluence of six-day-old rising trend-line, 4H 200MA adds to the resistance.
The USD/CHF pair’s one-week-old recovery seems to fade as the quote seesaws near 0.9814 during the Asian session on Tuesday.
Not only repeated failures to cross 50% Fibonacci retracement of current month declines but overbought conditions of 14-bar relative strength index (RSI) also increases the odds of its pullback.
With this, sellers can target immediate trend-line support, at 0.9790, whereas 0.9750, 0.9690 and monthly bottom close to 0.9660 will please them afterward.
On the upside, pair’s rise beyond 50% Fibonacci retracement of 0.9820 will confront 200-bar moving average on the four-hour chart (4H 200MA) and nearly a week-long ascending trend-line at 0.9835/37.
If at all prices manage to rally above 0.9837, 61.8% Fibonacci retracement near 0.9855 and 0.9880 can lure buyers.
USD/CHF 4-hour chart
Trend: Pullback 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.