USD/CHF Price Analysis: Further downside past 0.8800 appears more impulsive
- USD/CHF takes offers to extend week-start reversal from 1.5-month high.
- U-turn from multi-month-old resistance line, downside break of immediate rising trend line favor Swiss Franc pair sellers.
- 200-SMA lures short-term sellers; bulls need validation from 0.8830.
USD/CHF takes offers to extend the previous week’s U-turn from a multi-day-old resistance line amid early Tuesday, down 0.10% intraday near 0.8775 by the press time.
In doing so, the Swiss Franc (CHF) pair cheers the downside break of a one-month-long rising trend line support, now immediate resistance near 0.8790.
The trend line breakdown joins the downward-sloping RSI (14) line, not oversold, to also strengthen the bearish bias about the USD/CHF pair.
As a result, the sellers are all set to revisit the 200-SMA support of around 0.8725 before poking the 0.8700 round figure.
However, multiple levels marked during the late July highlight 0.8690 and 0.8630 will challenge the USD/CHF sellers afterward.
Meanwhile, the pair’s recovery past 0.8790 support-turned-resistance needs validation from the 0.8800 round figure and a downward-sloping resistance line from May 31, close to 0.8815 by the press time.
Following that, the double tops marked on August 14 and 21 around 0.8830 may act as the final defense of the USD/CHF bears ahead of directing the buyers toward June’s bottom surrounding 0.8900.
Overall, USD/CHF remains on the bear’s radar even if the road toward the south appears long and bumpy.
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.
