USD/CHF Price Analysis: Faces barricades around 61.8% Fibo retracement at 0.9840
- Hurdles around 61.8% Fibo retracement generally call for a bearish reversal but need more filters.
- The RSI (14) is displaying overbought signals therefore an extended correction cannot be ruled out.
- Advancing 20- and 50-EMAs are still favoring the greenback bulls.
The USD/CHF pair has displayed a less confident rebound after a corrective move from Tuesday’s high at 0.9858. On a broader note, the asset has remained in the grip of bulls after hitting a low of 0.9495 on June 29.
The asset has failed to sustain above the 61.8% Fibonacci retracement (which is placed from June high at 1.0050 to June 29 low at 0.9495) at 0.9839. However, a mild correction after hitting a high of 0.9859 on Tuesday doesn’t resemble a bearish reversal.
The 20- and 50-period Exponential Moving Averages (EMAs) at 0.9744 and 0.9733 respectively are advancing firmly, which adds to the upside filters.
Also, the Relative Strength Index (RSI) (14) has not surrendered the bullish range of 60.00-80.00 yet, which indicates that an upside is still intact. However, further correction due to the overbought situation cannot be ruled out.
A decisive violation of Tuesday’s high at 0.9859 will drive the asset towards the round-level resistance at 0.9900, followed by June 16 opening price at 0.9950.
On the flip side, the Swiss franc bulls could gain strength if the asset drops below 38.2% Fibo retracement at 0.9708. An occurrence of the same will drag the asset towards July 1 high at 0.9642. A slippage below July 1 higher will expose the asset to more downside towards July 4 low at 0.9562.
USD/CHF four-hour chart
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Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
