USD/CHF Price Analysis: Grinds lower past 0.8970 resistance confluence
- USD/CHF takes offers to reverse the week-start gains, mildly offered of late.
- Convergence of 100 and 200-EMA restricts immediate upside within three-week-old bullish channel.
- Ascending support line from June 26 restricts immediate downside.
USD/CHF holds lower ground near 0.8960 as it reverses the week-start rebound amid a sluggish Asian session on Tuesday. In doing so, the Swiss Franc (CHF) pair remains pressured below a convergence of the 100 and 200 Exponential Moving Averages (EMA).
Adding strength to the downside bias are the bearish MACD signals and steady RSI (14) line.
However, a one-week-old rising support line, near 0.8945 by the press time, restricts the immediate downside of the USD/CHF pair.
Following that, the aforementioned three-week-old rising trend channel’s bottom line, close to 0.8920 at the latest, holds the key to the pair’s further downside.
In a case where the Swiss Franc pair defies the bullish chart formation by breaking the 0.8920 support, the previous monthly low of around 0.8910 may act as an extra filter toward the south before directing the USD/CHF bears to the yearly low marked in May ear 0.8820.
On the contrary, a clear upside break of the 100 and 200 EMAs, around 0.8970, could quickly propel the USD/CHF price to the 0.9000 psychological magnet. However, the aforementioned bullish channel’s top line, close to 0.9020 as we write, can prod the pair buyers afterward.
Overall, USD/CHF is likely to improve gradually but the short-term pullback can’t be ruled out.
USD/CHF: Hourly chart
Trend: Limited 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.
