USD/CHF Price Analysis: Bears take a breather around six-week low under 200-DMA
- USD/CHF holds lower ground after breaking the key moving average.
- Bearish MACD, sustained break of 200-DMA favor sellers.
- 61.8% Fibonacci retracement offers immediate support, mid-July low adds to the upside filters.
USD/CHF picks up bids inside a less than 10-pip area surrounding 0.9050 during Friday’s Asian session. The major currency pair dropped to the lowest since June 16 the previous day after breaking 200-DMA.
Given the bearish MACD and a daily close below the key moving average, sellers are likely to keep the reins until witnessing a clear upside break of 90.75 comprising 200-DMA.
Even so, 50% Fibonacci retracement of January-April upside and July 15 low, around 0.9115, restricts the quote’s short-term advances.
If at all the USD/CHF bulls dominate past 0.9115, a downward sloping trend line from April, near 0.9210 will be a tough challenge for them.
Meanwhile, 61.8% Fibonacci retracement level of 0.9030 and the 0.9000 threshold could please the USD/CHF bears during the pair’s further downside.
However, an ascending support line from January, near 0.8980, should become a rest area for the sellers.
USD/CHF: Daily chart
Trend: Further weakness 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.
