USD/CHF Price Analysis: Bearish-engulfing candles sparked a fall towards 0.9420s

A softer US Dollar is weighing on the USD/CHF, down by almost 1%.
A bearish-engulfing candle pattern exacerbated a fall of 200 pips in the USD/CHF.
Short term, the USD/CHF is downward biased and might test 0.9300.

Christian Borjon Valencia FXStreet

The USD/CHF dives sharply, extending its losses to two straight days, after reaching a new two-week high of 0..9600, nearby the 200-day Exponential Moving Average (EMA) at 0.9628. Failure to reclaim the former exacerbated a 200-pip fall. Therefore, the USD/CHF is trading at 0.9430, losing almost 1%.

USD/CHF Price Analysis: Technical outlook

The USD/CHF daily chart portrays the formation of a bearish-engulfing candle chart pattern formed with Monday and Tuesday’s USD/CHF price action. On Wednesday, the major continued its downward path, after printing a daily high of 0.9533, right at the 23.6 % Fibonacci retracement, defended by sellers, as shown by the USD/CHF plunging 100 pips. Even though the Relative Strength Index (RSI) followed suit, it turned flat in bearish territory, opening the door for consolidation.

In the short term, the USD/CHF collided with the 50-period Exponential Moving Average (EMA) around 0.9488, and a downslope trendline was drawn since the beginning of November. Hence, the US Dollar (USD) buyers unable to break above 0.9500 exposed the pair to selling pressure.

Therefore, the USD/CHF first support will be the 0.9400 figure, followed by the November 15 swing low at 0.9356. A decisive break will expose the 0.9300 figure. Upwards, the USD/CHF key resistance level lie at 0.9500, which, once cleared, could open the door towards 0.9600 and beyond.

USD/CHF Key Technical Levels

USD/CHF

Overview
Today last price	0.9434
Today Daily Change	-0.0084
Today Daily Change %	-0.88
Today daily open	0.9518

Trends
Daily SMA20	0.9749
Daily SMA50	0.982
Daily SMA100	0.9734
Daily SMA200	0.9632

Levels
Previous Daily High	0.9596
Previous Daily Low	0.9509
Previous Weekly High	0.9558
Previous Weekly Low	0.9357
Previous Monthly High	1.0148
Previous Monthly Low	0.9781
Daily Fibonacci 38.2%	0.9542
Daily Fibonacci 61.8%	0.9563
Daily Pivot Point S1	0.9487
Daily Pivot Point S2	0.9455
Daily Pivot Point S3	0.94
Daily Pivot Point R1	0.9573
Daily Pivot Point R2	0.9628
Daily Pivot Point R3	0.966

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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