USD/CHF Price Analysis: Further downside hinges on 0.9970 break

USD/CHF remains mildly offered inside immediate symmetrical triangle.
Bearish divergence on RSI teases sellers but clear break of triangle appears necessary.
Tops marked in June, May add to the upside filters.

Anil Panchal FXStreet

USD/CHF prints mild losses around 0.9975-80 as bears flex muscles inside a three-day-old triangle formation ahead of Thursday’s European session.

That said, the lower high of prices join the lower tops on RSI (14) to portray the hidden bearish divergence, which in turn lures sellers. However, a clear downside break of the stated triangle’s support line, near 0.9970 by the press time, appears necessary for the USD/CHF bears to retake control.

Following that, 200-HMA and an upward-sloping support line from September 30, respectively near 0.9910 and 0.9880, will gain the trader’s attention.

It’s worth noting that the USD/CHF pair’s weakness past 0.9880 won’t hesitate to challenge the monthly low surrounding 0.9785.

Meanwhile, the pair’s successful trading beyond the 1.0000 parity level, also comprising the stated triangle’s resistance line, could propel the quote toward the monthly high near 1.0020.

Even so, tops marked in June and May, around 1.0050 and 1.0065 could challenge the USD/CHF bulls before directing them to the April 2019 peak of around 1.0240.

USD/CHF: Hourly chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	0.9976
Today Daily Change	-0.0010
Today Daily Change %	-0.10%
Today daily open	0.9986

Trends
Daily SMA20	0.982
Daily SMA50	0.9702
Daily SMA100	0.9691
Daily SMA200	0.9543

Levels
Previous Daily High	1.0004
Previous Daily Low	0.9931
Previous Weekly High	0.9954
Previous Weekly Low	0.9781
Previous Monthly High	0.9966
Previous Monthly Low	0.948
Daily Fibonacci 38.2%	0.9976
Daily Fibonacci 61.8%	0.9959
Daily Pivot Point S1	0.9944
Daily Pivot Point S2	0.9901
Daily Pivot Point S3	0.987
Daily Pivot Point R1	1.0017
Daily Pivot Point R2	1.0047
Daily Pivot Point R3	1.009

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.

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