USD/CHF Price Analysis: Further downside towards 0.8700 appears impulsive

USD/CHF remains pressured at weekly low, extends pullback from 50-DMA, key resistance line.
Downside break of monthly support line, looming bear cross on MACD also favor Swiss Franc pair sellers.
One-month-old horizontal support zone appears a tough nut to crack for bears.
Buyers need successful break of 0.8830 to retake control.

Anil Panchal FXStreet

USD/CHF drops to the lowest level in a week while refreshing intraday bottom around 0.8765 heading into Thursday’s European session. In doing so, the Swiss Franc (CHF) pair prints a two-day losing streak by extending the previous day’s reversal from the 50-DMA and a three-month-old descending resistance line.

Not only the failure to cross the key DMA and trend line resistance but a sustained trading beneath the previous support line, which broke on Monday, joins the impending bear cross on the MACD indicator to also keep the USD/CHF sellers hopeful.

With this, the Swiss Franc (CHF) pair sellers approach a one-month-old horizontal support zone surrounding the 0.8700 threshold.

Following that, the 0.8635-30 region will act as the final defense of the USD/CHF buyers before pushing the traders toward the multi-year low marked in July around 0.8552.

Meanwhile, a convergence of the stated DMA and trend line, around 0.8805, restricts the immediate upside of the USD/CHF pair, a break of which could propel the quote towards the previous support line surrounding 0.8825.

However, the quote’s upside past 0.8825 needs validation from the double tops surrounding 0.8830.

Overall, the USD/CHF remains bearish but the room toward the south appears limited.

USD/CHF: Daily chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	0.8765
Today Daily Change	-0.0016
Today Daily Change %	-0.18%
Today daily open	0.8781

Trends
Daily SMA20	0.8762
Daily SMA50	0.8801
Daily SMA100	0.8894
Daily SMA200	0.909

Levels
Previous Daily High	0.8817
Previous Daily Low	0.8774
Previous Weekly High	0.8828
Previous Weekly Low	0.8738
Previous Monthly High	0.9005
Previous Monthly Low	0.8552
Daily Fibonacci 38.2%	0.8791
Daily Fibonacci 61.8%	0.8801
Daily Pivot Point S1	0.8764
Daily Pivot Point S2	0.8747
Daily Pivot Point S3	0.8721
Daily Pivot Point R1	0.8807
Daily Pivot Point R2	0.8834
Daily Pivot Point R3	0.8851

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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