USD/CHF Price Analysis: Recovery moves eye two-week-old resistance line
- USD/CHF trims intraday losses while extending corrective bounce off 0.9138.
- 61.8% of Fibonacci retracement adds to the upside barriers.
- Multiple support lines will question the bears below 50% Fibonacci retracement.
USD/CHF extends pullback from intraday low while rising to 0.9150 ahead of Wednesday’s European session. In doing so, the pair trims the early-Asian losses while bouncing off the short-term support line, currently around 0.9130.
With the strong RSI conditions, not overbought, suggesting the pair’s further upside, 61.8% Fibonacci retracement of September 25 to November 06 downside, near 0.9175, can’t be ruled out.
However, bulls are less likely to be convinced until witnessing a clear break of the short-term resistance line, at 0.9185 now.
Meanwhile, a downside break of 0.9130 will eye the horizontal area close to 0.9090 before eyeing the double bottom formed near 0.9030 during the late-October.
If at all the USD/CHF bears refrain from respecting the stated supports, the 0.9000 thresholds offer the last hopes of countertrend traders ahead of targeting a move below the monthly bottom of 0.8982.
USD/CHF four-hour chart
Trend: Further recovery 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.
