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.

Christian Borjon Valencia FXStreet

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

USD/CHF

Overview
Today last price	0.9158
Today Daily Change	-0.0055
Today Daily Change %	-0.60
Today daily open	0.9213

Trends
Daily SMA20	0.8971
Daily SMA50	0.8841
Daily SMA100	0.8894
Daily SMA200	0.9033

Levels
Previous Daily High	0.9225
Previous Daily Low	0.9145
Previous Weekly High	0.9078
Previous Weekly Low	0.8932
Previous Monthly High	0.8876
Previous Monthly Low	0.869
Daily Fibonacci 38.2%	0.9195
Daily Fibonacci 61.8%	0.9176
Daily Pivot Point S1	0.9164
Daily Pivot Point S2	0.9114
Daily Pivot Point S3	0.9083
Daily Pivot Point R1	0.9244
Daily Pivot Point R2	0.9275
Daily Pivot Point R3	0.9325

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.

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