USD/CHF Price Analysis: Rejected at 0.94, bear flag on 4H

USD/CHF is under pressure in Asia as US index futures are flashing red.
The pair has created a bear flag or a bearish continuation pattern on the 4-hour chart.

Omkar Godbole FXStreet Contributor

USD/CHF is currently trading at 0.9364, representing a 0.38% drop on the day, having failed to chew through offers around 0.94 during the overnight trade.

The anti-risk CHF is drawing bids in Asia, possibly tracking the S&P 500 futures, which are currently signaling risk aversion with a 2.25% drop.

From a technical perspective, the pair's bounce from Monday's low of 0.9182 to 0.94 has taken the shape of a bear flag, a bearish continuation setup, on the 4-hour chart.

A break below 0.93 (lower end of the flag) would confirm an end of the recovery rally and revival of the bearish trend from recent highs above 0.98 and could yield re-test of Monday'slow of 0.9182.

However, a flag breakdown will likely remain elusive, if the spot finds acceptance above 0.94. That could be seen if the global equities extend Tuesday's recovery rally, which was reportedly fueled by expectations for fresh US fiscal stimulus.

4-hour chart

Trend: Bearish

Technical levels

USD/CHF

Overview
Today last price	0.9365
Today Daily Change	-0.0037
Today Daily Change %	-0.39
Today daily open	0.9402

Trends
Daily SMA20	0.9669
Daily SMA50	0.969
Daily SMA100	0.9786
Daily SMA200	0.983

Levels
Previous Daily High	0.9412
Previous Daily Low	0.924
Previous Weekly High	0.9656
Previous Weekly Low	0.9318
Previous Monthly High	0.9851
Previous Monthly Low	0.9609
Daily Fibonacci 38.2%	0.9346
Daily Fibonacci 61.8%	0.9306
Daily Pivot Point S1	0.9291
Daily Pivot Point S2	0.9179
Daily Pivot Point S3	0.9118
Daily Pivot Point R1	0.9463
Daily Pivot Point R2	0.9524
Daily Pivot Point R3	0.9635

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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