USD/CHF Price Analysis: 200-DMA probes rebound from six-week-old support
- USD/CHF consolidates the biggest daily fall in seven weeks between the key moving average, trend line.
- Bearish MACD, lower highs since January keep sellers hopeful.
Having dropped the most since mid-January the previous day, USD/CHF prints mild gains around 0.9190 during Tuesday’s Asian session. In doing so, the Swiss currency pair bounces off an upward sloping trend line from January 13.
However, the 200-DMA and 61.8% Fibonacci retracement (Fibo.) of January’s upside challenges the immediate advance of the pair around 0.9185.
Also favoring the USD/CHF sellers are the bearish MACD signals and the pair’s lower highs marked since January 31.
Hence, odds of a pullback towards the stated support line, near 0.9170 by the press time, can’t be ruled out.
Though, a clear downside past-0.9170 won’t hesitate to challenge February’s low of 0.9170.
Alternatively, the USD/CHF pair's recovery moves beyond 0.9185 will aim for the 50% Fibo. level near 0.9215.
It’s worth noting that a jungle of resistances will test USD/CHF buyers between 0.915 and 0.9300, beyond which the upside momentum to January’s peak of 0.9343 will become imminent.
USD/CHF: Daily chart
Trend: Pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
