USD/CHF Price Analysis: Pierces previous support line below 0.9500
- USD/CHF bulls jostle with short-term key resistance line.
- Bullish MACD signals, firmer RSI favor buyers to extend the bounce off four-month low.
- Monthly resistance line, 200-SMA adds to the upside filters.
USD/CHF grinds higher around 0.9460 as buyers attack a seven-week-old previous support line during Tuesday’s Asian session.
In doing so, the Swiss currency (CHF) pair extends the previous week’s rebound from the lowest levels since mid-April. Also keeping the buyers hopeful is the RSI (14) line, as well as the bullish MACD signals.
That said, a clear upside break of the 0.9470 hurdle appears necessary for the USD/CHF bulls to approach a downward sloping resistance line from July, close to 0.9560 at the latest.
Following that, the 200-SMA hurdle near 0.9630 will be an important challenge for the pair’s further upside past 0.9560.
Alternatively, pullback moves may aim for the three-day-old support line, close to 0.9430, but remain unconvincing beyond the monthly low of 0.9370.
Even if the quote drops below 0.9370, January’s peak around 0.9345 may act as the last defense for USD/CHF bulls before giving control to the bears. In that case, March’s low of 0.9195 will be in focus.
Overall, USD/CHF pares recent losses but has miles to go before luring buyers.
USD/CHF: Four-hour chart
Trend: Further upside 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.
