- USD/CHF takes offers to extend the previous day’s pullback from one-week high.
- Multiple levels marked since previous Wednesday restrict immediate downside of Swiss Franc pair.
- Buyers have bumpy road to travel before taking control, 0.9040 is the key hurdle.
USD/CHF holds lower ground near the intraday bottom of near 0.8965 as it keeps the previous day’s U-turn from a one-week high during early Thursday. In doing so, the Swiss Franc (CHF) pair defends the U-turn from the 50-bar Exponential Moving Average (EMA).
Given the recently diminishing strength of the bullish MACD signals, as well as the quote’s repeated failures to cross the 50-EMA hurdle, the USD/CHF price is likely to decline further.
However, one-week-old horizontal support around 0.8955 restricts the immediate downside of the pair.
Following that, 0.8920 and the 0.8900 round figure may prod the USD/CHF bears before directing them to the multi-month low of around 0.8860 marked in the last week.
Should the quote remains bearish past 0.8860, it becomes vulnerable to visiting the 2021 bottom surrounding 0.8755. Though, the 0.8800 threshold may act as a buffer during the likely fall.
Meanwhile, an upside break of the 50-EMA hurdle of 0.8987 isn’t a blockbuster ticket for the USD/CHF buyers as a 13-day-old descending trend line and a downward-sloping trend line from early March, respectively near 0.8995 and 0.9030, could challenge the upside moves.
Even if the quote rises past 0.9030, the 100-SMA acts as the last defense of the USD/CHF bears before welcoming the bulls with open hands.
USD/CHF: Four-hour chart
Trend: Further downside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD finds support above 1.0450, holds at 10-month lows
EUR/USD dropped to a fresh low for the year, reaching a level close to 1.0450 on Tuesday. It then experienced a slight rebound, but recovery momentum faded around 1.0480. The US Dollar continues to be supported by positive US economic data, higher yields, and a risk-averse market sentiment.
GBP/USD moving sideways around 1.2070
GBP/USD reached a bottom at 1.2053 on Tuesday, marking the lowest level since March. However, it later trimmed its losses and rebounded to 1.2100. Nevertheless, the pair pulled back once again following positive US data. It is stabilizing around 1.2070.
Gold moves closer to $1,800 amid risk-off flows Premium
Gold price stays under modest bearish pressure and trades below $1,830 in the second half of the day on Tuesday. The benchmark 10-year US Treasury bond yield holds at fresh multi-year highs above 4.7% after upbeat US data, not allowing XAU/USD to gain traction.
Bitcoin Lightning Network capacity falling to a 14-month low should not worry BTC investors
Before Bitcoin Ordinals and BRC-20, the world’s first cryptocurrency network ran the most prominent Layer-2 solution – Lightning Network (LN). Over the past, the network was widely utilized for conducting faster transactions, but LN seems to be losing the amount of BTC on it at the moment.
S&P 500 Forecast: Index slides over 1% as risk-off mood persists
The S&P 500 index lost 0.74% last week, which was the fourth week in a row where the index declined. That performance came despite Personal Consumption Expenditures (PCE) data showing that Core inflation was growing at its slowest pace in two years.