USD/CHF Price Analysis: Buyers lurk around seven-week-old support line below 0.9200
- USD/CHF pares intraday losses as sellers attack short-term key support.
- Bearish MACD signals, sustained trading below 100-DMA hint at the further downside.
USD/CHF fades bounce off intraday low as bears approach multi-day-old support line during Friday’s Asian session. That said, the Swiss currency (CHF) pair drops to 0.9183 by the press time.
The quote’s latest weakness could be linked to the market’s risk-aversion wave backed by the Ukraine-Russia headlines. However, the odds of Fed’s faster and more rate hikes seem to put a floor under the prices.
It’s worth noting that bearish MACD signals and failures to rebound beyond the 100-DMA also keep sellers hopeful.
Hence, the latest USD/CHF weakness eyes the ascending support line from January 13, near 0.9170. Though, a daily closing below the same becomes necessary to convince the bears.
In that case, an upward sloping support line from August 2021, near 0.9115, will lure the USD/CHF bears before highlighting the 0.9100 threshold.
Meanwhile, recovery moves remain elusive until crossing the 100-DMA level of 0.9206.
Even so, a descending resistance line from January 31, near 0.9270 by the press time, will be a tough nut to crack for USD/CHF bears.
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.
