USD/CHF hangs near multi-year lows, below 0.9100 mark

USD/CHF struggled to register any meaningful recovery from multi-year lows.
A modest USD bounce, the prevalent risk-on mood extended some support.
The price action suggests that the bearish trend might still be far from over.

Haresh Menghani FXStreet

The USD/CHF pair faded an early European session spike and has now retreated to the lower end of its daily range, around the 0.9080 region.

Following an early uptick to levels beyond the 0.9100 mark, the pair met with some fresh supply and drifted into the negative territory for the third consecutive session on Thursday. However, a combination of supporting factors helped limit any deeper losses.

The US dollar witnessed some intraday short-covering move from two-year lows amid extremely oversold conditions. Adding to this, the upbeat market mood undermined the safe-haven Swiss franc and further collaborated towards extending some support to the USD/CHF pair.

Meanwhile, concerns about the pace of the US economic recovery, along with the impasse over the next round of the US fiscal stimulus measures might also hold the USD bulls from placing aggressive bets. This, in turn, should cap the upside for the USD/CHF pair.

The pair's inability to gain any meaningful traction clearly indicates that the near-term bearish trend might still be far from being over. However, oscillators on short-term charts are flashing oversold conditions and warrant some caution for bearish trades.

Hence, it will be prudent to wait for some near-term consolidation or a modest bounce before positioning for an extension of the recent downtrend to multi-year lows. In the meantime, Thursday's release of the US Initial Weekly Jobless Claims will be looked upon for some trading impetus.

Technical levels to watch

USD/CHF

Overview
Today last price	0.9081
Today Daily Change	-0.0004
Today Daily Change %	-0.04
Today daily open	0.9085

Trends
Daily SMA20	0.9275
Daily SMA50	0.9415
Daily SMA100	0.956
Daily SMA200	0.9661

Levels
Previous Daily High	0.9139
Previous Daily Low	0.9051
Previous Weekly High	0.923
Previous Weekly Low	0.9056
Previous Monthly High	0.9494
Previous Monthly Low	0.9056
Daily Fibonacci 38.2%	0.9084
Daily Fibonacci 61.8%	0.9105
Daily Pivot Point S1	0.9044
Daily Pivot Point S2	0.9003
Daily Pivot Point S3	0.8955
Daily Pivot Point R1	0.9132
Daily Pivot Point R2	0.918
Daily Pivot Point R3	0.9221

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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