- USD/CHF keeps the previous day’s recovery moves around multi-day top.
- Overbought RSI, key Fibonacci retracement level test buyers.
- Bullish chart, 21-day SMA challenge sellers’ entry, 50% Fibonacci retracement can entertain sellers.
USD/CHF holds steady around 0.9395 while keeping the previous days upside during the pre-European session trading on Tuesday.
In doing so, USD/CHF justifies overbought RSI and fears of fading the upside momentum before hitting the key hurdle, namely 61.8% Fibonacci retracement level of March 2020 to January 2021 downside.
While the pullback moves can eyes 50% Fibonacci retracement level of 0.9330, any further weakness will be challenged by 21-day SMA and two-month-old rising channel formation’s support, around 0.9295. Also highlighting the importance of the 0.9295 support level is the September 2020 top.
Alternatively, USD/CHF buyers will look for a fresh 8.5-month high before attacking the key Fibonacci hurdle to the north, close to 0.9465.
It should, however, be noted that the pair’s upside past-0.9465 will be tamed by the said channel’s resistance line surrounding 0.9600.
USD/CHF daily chart
Trend: Pullback expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD rises above 1.0900 after upbeat EU data
EUR/USD has gained traction and climbed above 1.0900 in the European session after the upbeat sentiment data from the Eurozone area helped the Euro gather strength. Meanwhile, the US Dollar stays on the back foot despite the cautious market mood.
GBP/USD gains traction, trades above 1.2400
GBP/USD has gathered recovery momentum and advanced beyond 1.2400 on Monday. The modest selling pressure surrounding the US Dollar ahead of key central bank policy announcements later this week seems to be helping the pair push higher.
Gold finds support, rebounds to $1,930 area
Gold price has recovered toward $1,930 and erased its daily losses. With the benchmark 10-year US Treasury bond yield gaining more than 1% on the day above 3.5%, however, XAU/USD is struggling to gather further bullish momentum.
Here’s why Ethereum-killer Cardano whales are shedding their ADA holdings
Cardano network’s large wallet investors have started selling or redistributing their holdings. ADA price has broken out of the multi-month downtrend and the next bullish target represents a 10% climb.
ECB cheat sheet: Wake up, this isn’t the Fed
A 50bps hike by the ECB, and a repeat of its December guidance, are set in stone but a pushback against subsequent cut expectations will move 5Y euro rates higher.