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USD/CHF Price Analysis: Dragonfly Doji, oversold RSI hints at corrective bounce towards 0.8900

  • USD/CHF rebounds from one-week low after posting bullish candlestick.
  • Oversold RSI (14) conditions, eight-day-old horizontal support challenges Swiss Franc pair sellers.
  • Buyers have a bumpy road towards the north, 0.8940 appears the last defense of bears.

USD/CHF prods the bears around 0.8875 amid Tuesday’s initial European session, after posting a bullish candlestick during early Asia. Adding strength to the recovery moves is the oversold RSI (14) line, as well as the quote’s U-turn from a one-week-old horizontal support zone.

With this, the USD/CHF buyers are likely approaching the 0.8900 threshold. However, a downward-sloping resistance line from April 19, close to 0.8910 at the latest, restricts the immediate upside of the quote.

Following that, a two-week-old descending resistance line, near 0.8940 by the press time, will be crucial to watch as a break of which can quickly propel the USD/CHF price towards the highs marked on April 10 and 03, near 0.9115 and 0.9200 in that order.

It should be noted that the 0.9100 round figure may also act as an extra filter towards the north.

Meanwhile, a downside break of 0.8860 could defy the bullish signals flashed by the “Dragonfly Doji” candlestick and oversold RSI line.

In that case, the USD/CHF bears may approach the year 2021 low near 0.8755 wherein the December 2020 bottom of around 0.8820 may act as an intermediate halt.

USD/CHF: Four-hour chart

Trend: Further recovery expected

Additional important levels

Overview
Today last price0.8873
Today Daily Change-0.0004
Today Daily Change %-0.05%
Today daily open0.8877
 
Trends
Daily SMA200.9029
Daily SMA500.9182
Daily SMA1000.9222
Daily SMA2000.9463
 
Levels
Previous Daily High0.8928
Previous Daily Low0.8876
Previous Weekly High0.9003
Previous Weekly Low0.8908
Previous Monthly High0.944
Previous Monthly Low0.9072
Daily Fibonacci 38.2%0.8896
Daily Fibonacci 61.8%0.8908
Daily Pivot Point S10.8859
Daily Pivot Point S20.8842
Daily Pivot Point S30.8807
Daily Pivot Point R10.8911
Daily Pivot Point R20.8946
Daily Pivot Point R30.8963

Author

Anil Panchal

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.

More from Anil Panchal
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