- USD/CHF locks in some gains in the early European session.
- Pair looks for additional gains, stays comfortable above 20-hour SMA.
- Momentum oscillators hold onto overbought zone and adopt a wait-and-watch approach.
USD/CHF edges higher on Tuesday morning in the initial European trading hours. The pair moves in a close trading range with almost 10 pips movement and awaits confirmation before any directional bet.
At the time of writing, USD/CHF is trading at 0.9190, up 0.10% for the day.
USD/CHF 4-hour chart
-637599321238751302.png)
On the 4-hour chart, the pair has been well supported above the 20-hour Simple Moving Average (SMA) at 0.9185. The upward trendline from the low of 0.8981 remains defensive for the bulls.
If the pair sustains above the session’s high at 0.9196, then it has the potential to move back to the 0.9220 horizontal resistance level.
The Moving Average Convergence Divergence (MACD) indicator trades in an overbought zone, with a bearish crossover. As per the formation, price has retracted from the highs of 0.9230 to the lows of 0.9176. Any uptick in the MACD could prompt USD/CHF bulls to retest the previous day’s high in the vicinity of 0.9240 area.
The price action would then open the gates for the levels last seen in April. The bulls would capture the high of April 15 at 0.9246.
Alternatively, if price reverses direction, then the first target for USD/CHF bears could be the previous day’s low at 0.9175 followed by the 0.9140 horizontal support area.
Next, the market participants would set their eyes on the 0.9100 key psychological mark.
USD/CHF additional levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
AUD/USD hovers around 0.6500 amid light trading, ahead of US GDP
AUD/USD is trading close to 0.6500 in Asian trading on Thursday, lacking a clear directional impetus amid an Anzac Day holiday in Australia. Meanwhile, traders stay cautious due ti risk-aversion and ahead of the key US Q1 GDP release.
USD/JPY finds its highest bids since 1990, near 155.50
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, testing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming Japanese intervention risks. Focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price treads water near $2,320, awaits US GDP data
Gold price recovers losses but keeps its range near $2,320 early Thursday. Renewed weakness in the US Dollar and the US Treasury yields allow Gold buyers to breathe a sigh of relief. Gold price stays vulnerable amid Middle East de-escalation, awaiting US Q1 GDP data.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta Platforms Earnings: META sinks 10% on lower Q2 revenue guidance Premium
This must be "opposites" week. While Doppelganger Tesla rode horrible misses on Tuesday to a double-digit rally, Meta Platforms produced impressive beats above Wall Street consensus after the close on Wednesday, only to watch the share price collapse by nearly 10%.