USD/CHF Price Analysis: Mildly bid around 0.9200 but bears keep controls
- USD/CHF struggles to keep the first daily gains in four around three-week low.
- Short-term falling channel, 100-SMA challenge bulls amid sluggish Momentum.
- Fresh declines eye 0.9140-45 support confluence, further weakness will have a bumpy road.
USD/CHF fades bounce off three-week low to revisit 0.9200 amid early Wednesday. The Swiss currency (CHF) pair drops during the last three days before bouncing off 0.9157 support on Tuesday.
In doing so, the quote portrays a weekly descending channel to tease the sellers. Adding to the bearish bias is the sluggish Momentum line that doesn’t support the latest rebound, as well as sustained trading below the 100-SMA.
That said, the quote presently aims for a convergence of the stated channel and an ascending trend line from early November, close to 0.9145-40.
However, the pair’s further weakness will have multiple hurdles around 0.9100, a break of which will direct USD/CHF sellers to attack the last month’s low near 0.9088.
Meanwhile, buyers may aim for the 100-SMA and channel’s resistance line, near 0.9255-60, during additional upside.
In a case where the USD/CHF prices cross the 0.9260 hurdle, a fortnight-old horizontal line near 0.9325 will challenge the bulls before directing them to November’s peak of 0.9373.
USD/CHF: Four-hour chart
Trend: Pullback 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.
