USD/CHF Technical Analysis: Heavy inside monthly rising trend-channel, 0.9700 in focus
|- USD/CHF stays below the five-week-old falling trend line, 23.6% Fibonacci retracement.
- Bearish MACD increases the odds of the pair’s declines.
- Channel’s resistance, 50% Fibonacci retracement will question buyers during the recovery.
USD/CHF registers modest changes while taking rounds to 0.9730, ahead of the European session on Monday. The pair recently reversed from a descending trend line since December 6 and is also slipping beneath 23.6% Fibonacci retracement of November 29 to December 31 declines.
Even so, sellers are afraid of entering unless USD/CHF prices dip below the support line of the two-week-old rising trend channel, at 0.9705 now. In doing it so, 0.9660 and the year 2019 low near 0.9646 will be on the Bear’s radar.
If traders ignore bearish MACD, the broad resistance line, at 0.9750, will be the first one to challenge the buyers.
Following that, the channel’s resistance around 0.9780 and 50% Fibonacci retracement level close to 0.9835 could question the bulls, failing to which will recall 0.9880 and 0.9900 to the charts.
USD/CHF four-hour chart
Trend: Bearish
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.