USD/CHF Technical Analysis: Forms bearish flag on hourly chart
|- USD/CHF sellers await confirmation of the bearish technical pattern.
- 200-hour EMA limits immediate upside.
Following its heavy declines on Monday, USD/CHF trades near 0.9880 while heading into the European session on Tuesday. The pair forms a bearish flag on the hourly chart while staying near the pattern support by the press time.
With this, sellers will wait for a downside break of flag support, near 0.9870, to aim for the theoretical target of 0.9700. However, lows marked in October and September months near 0.9835 and 0.9800 can offer intermediate halts during the south-run.
Meanwhile, 200-hour Exponential Moving Average (EMA) around 0.9910 will cap the pair’s immediate upside before shifting market attention to the flag’s resistance line close to 0.9925.
If at all bulls manage to cross 0.9925, December 02 high near 0.9930 can act as a validation point to escalate the run-up towards 0.9980 and 1.0000 round-figure.
USD/CHF hourly chart
Trend: Bearish
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