USD/CHF Price Analysis: Looses steam and dives below 0.9200 as bearish engulfing pattern looms
- USD/CHF retreats to around 0.9150 after reaching a new cycle high at 0.9225.
- To resume the uptrend, the pair must rally past 0.9225, allowing buyers to challenge the year-to-date highs at 0.9440.
- If USD/CHF fails to reclaim 0.9200, a drop towards 0.9100 is likely, with the 200-hour moving average eyed at 0.9071.
USD/CHF reverses its direction after rallying for 16 straight days, though the pair loses steam as technical indicators signal the major is overbought. Hence, the USD/CHF is trading at around 0.9150s, down 0.57%.
The uptrend remains intact, as shown by the daily chart, as the USD/CHF reached a new cycle high at 0.9225 and broke above the 200-day moving average (DMA) at 0.9029. However, to resume its uptrend, the major must rally past the former, so buyers can challenge the year-to-date (YTD) highs at 0.9440. A breach of the latter can open the door for parity.
In short, the USD/CHF hourly chart portrays the break of market structure on the downside. After hitting a multi-month high, the major retraced below 0.9200, extending its losses past the 50-hour moving average (HMA) at 0.9182. That exacerbated a fall below the 61.8% Fibonacci retracement, though lately buyers stepped in, and lifted the spot price above 0.9159. If the USD/CHF reclaims 0.9200, a test of September’s high at 0.9225 is on the cards. Otherwise, expect a drop towards 0.9100, followed by the 200-HMA at 0.9071.
USD/CHF Price Action – Hourly chart
USD/CHF Key Technical Levels
Author
Christian Borjon Valencia
FXStreet
Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.
