USD/CHF Price Analysis: Fortnight-old resistance line, Doji prod bulls near 0.8950
- USD/CHF fades week-start recovery near short-term key resistance line, stays sidelined of late.
- Bearish candlestick formation, sluggish RSI also signal pullback moves.
- Convergence of 50-SMA, one-week-old ascending trend line restrict short-term downside.
- Bulls have a bumpy road to ride unless crossing 200-SMA.
USD/CHF seesaws around 0.8950-60 following a failure to cross a two-week-old resistance line during early Tuesday. In doing so, the Swiss Franc (CHF) pair justifies the previous day’s Doji candlestick while positing mild losses near the stated price after an upward start to the week.
With this, the USD/CHF price is likely to decline towards the 0.8925-20 support confluence comprising the 50-SMA and a one-week-old ascending support line.
In a case where the USD/CHF bears keep the reins past 0.8920, the 0.8900 round figure and the previous monthly low, also the yearly low around 0.8850, will be in the spotlight.
It’s worth noting that the pair’s weakness past 0.8850 will make it vulnerable to dropping toward the year 2021 low of around 0.8755.
On the flip side, the aforementioned resistance line, near 0.8965 by the press time, precedes the late April swing high of around 0.8975 to restrict the immediate USD/CHF upside.
Following that, a one-month-old downward-sloping resistance line and the 200-SMA, respectively near 0.9015 and 0.9060, will be in the spotlight.
Overall, USD/CHF remains depressed but the bears are likely running out of steam, which in turn highlights the 0.8925-20 support confluence.
USD/CHF: Four-hour chart
Trend: Further downside 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.
