- USD/CHF consolidates the heaviest daily losses around seven-week low.
- 200-DMA, fortnight-old resistance line guards immediate recovery moves.
- Bearish MACD signals, steady RSI keeps sellers hopeful until crossing five-week-old resistance line.
USD/CHF picks up bids to refresh intraday high around 0.9160, up 0.13% intraday heading into Thursday’s European session.
The Swiss currency (CHF) pair dropped to the lowest levels since November 10 the previous day but failed to provide a daily closing below a four-month-old support line. The same helped the quote to portray a corrective pullback from the multi-day bottom of late.
However, bearish MACD signals and sustained trading below 200-DMA keep USD/CHF bears hopeful.
In addition to the 200-DMA level of 0.9175, descending trend lines from December 15 and November 24, respectively, around 0.9200 and 0.9240, also challenge USD/CHF bulls.
That said, the pair sellers will wait for a clear downside break of the stated support line from August, near 0.9130 by the press time for fresh entry.
Should the USD/CHF prices remain below 0.9130, November’s low of 0.9088 will be in focus.
Hence, the pair’s latest recovery moves are not yet suitable to be termed as trend reversal.
USD/CHF: Daily chart
Trend: Further weakness expected
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