USD/CHF Price Analysis: Bounces off descending channel support, near mid-0.9000s


  • USD/CHF has been trending lower along a three-day-old descending channel.
  • The set-up supports prospects for a slide back towards the key 0.9000 mark.
  • The descending channel resistance might cap any attempted recovery move.

The USD/CHF pair remained depressed for the fifth consecutive session on Tuesday and dropped to mid-0.9000s in the last hour. The mentioned levels marks the lower end of a three-day-old descending trend-channel, which should now act as a key pivotal point for intraday traders.

Meanwhile, technical indicators on hourly/daily charts maintained their bearish bias and are still far from being in the oversold territory. The set-up favours bearish traders and supports prospects for an extension of the recent rejection slide from the 0.9200 mark amid a broad-based USD weakness.

That said, the prevalent risk-on environment, which tends to undermine the safe-haven CHF, might help limit the downside. This makes it prudent to wait for some strong follow-through selling below the mentioned support before positioning for any further near-term depreciating move.

Bears might then aim back to challenge the key 0.9000 psychological mark, which if broken decisively will turn the pair vulnerable and pave the way for a slide towards the 0.8930-25 support. The downward trajectory could further get extended towards the 0.8900 mark en-route mid-0.8800s.

On the flip side, the descending channel resistance, around the 0.9085 region might keep a lid on any attempted recovery move. A sustained strength beyond, leading to a subsequent move above 100-hour SMA, around the 0.9100 mark, will negate the bearish bias and prompt some short-covering move.

The pair might then aim back towards conquering the 0.9200 mark hurdle, with some intermediate resistance near mid-0.9100s and 50-day SMA, around the 0.9185 region.

USD/CHF 1-hourly chart

fxsoriginal

Technical levels to watch

USD/CHF

Overview
Today last price 0.9067
Today Daily Change -0.0016
Today Daily Change % -0.18
Today daily open 0.9083
 
Trends
Daily SMA20 0.91
Daily SMA50 0.9185
Daily SMA100 0.9391
Daily SMA200 0.9546
 
Levels
Previous Daily High 0.9099
Previous Daily Low 0.9058
Previous Weekly High 0.92
Previous Weekly Low 0.9049
Previous Monthly High 0.9242
Previous Monthly Low 0.8999
Daily Fibonacci 38.2% 0.9074
Daily Fibonacci 61.8% 0.9083
Daily Pivot Point S1 0.9061
Daily Pivot Point S2 0.904
Daily Pivot Point S3 0.9021
Daily Pivot Point R1 0.9102
Daily Pivot Point R2 0.912
Daily Pivot Point R3 0.9142

 

 

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