USD/CHF Price Analysis: Retreats further but holds above key trendline, eyes on 0.9000
- USD/CHF holds above crucial support despite the second-day drop
- The USD buyers struggle to recapture the 0.9000 mark.
- Triple-bottom pattern hints at a potential bullish reversal.
USD/CHF drops for the second straight day but remains above a one-month-old upslope support trendline amidst buyers’ failure to reclaim the 0.9000 figure on a risk-on mood environment. At the time of writing, the USD/CHF exchanges hands at 0.8933, losses 0.26% after reaching a daily high of 0.8970.
USD/CHF Price Analysis: Technical outlook
Although the USD/CHF remains downward biased in the short term, the downtrend remains suspect, as sellers couldn’t break below 0.8900 to test the year-to-date (YTD) low of 0.8819. That, alongside subsequent failure tests of USD/CHF sellers to surpass the 0.8920 area, formed a triple-bottom chart pattern, which warrants further upside.
If the above scenario plays out, the USD/CHF first resistance would be the 20-day Exponential Moving Average (EMA) at 0.8983, followed by the 50-day EMA at 0.9011. A breach of the latter, and the USD/CHF could rally towards the 100-day EMA at 0.9087 before challenging the 0.9100 figure.
Conversely, and the path of least resistance as oscillators remain in bearish territory, the USD/CHF first support would be 0.8920. Once cleared, the next support would be 0.8900, ahead of plunging toward the YTD low of 0.8819.
USD/CHF Price Action – Daily chart
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
