USD/CHF Price Analysis: Rising wedge teases bears, 0.9985 is the key

USD/CHF remains pressured inside a bearish chart pattern.
Sustained trading below 50-HMA, downside break of weekly support line also favor sellers.
Buyers need validation from 1.0075 to refresh multi-month high.

Anil Panchal FXStreet

USD/CHF holds lower grounds near the parity levels, fading the week-start bounce off 0.9944 inside a rising wedge bearish formation during Tuesday’s Asian session.

In doing so, the Swiss currency pair also extends the previous day’s pullback from the 50-HMA hurdle while keeping Friday’s downside break of a one-week-old ascending support line, now resistance around 1.0085.

Additionally favoring the USD/CHF sellers is the receding bullish bias of the MACD line, as well as the recent lower-high formation.

It should, however, be noted that a clear downside break of the 0.9985 support appears necessary to confirm the rising wedge pattern.

Following that, the recent swing low of around 0.9945 and the previous weekly bottom near 0.9920 could test the USD/CHF bears during the theoretical fall towards 0.9890.

Alternatively, the 50-HMA level surrounding 1.0025 acts as an immediate hurdle to watch during the pair’s fresh recovery, a break of which should question the bearish wedge’s resistance line, close to 1.0040 at the latest.

In a case where USD/CHF rises past 1.0040, the bearish formation gets defied.

However, a broad horizontal area comprising multiple levels marked since October 13, between 1.0066 and 1.0075 will precede the support-turned-resistance line, near 1.0085, to challenge the USD/CHF bulls afterward.

USD/CHF: Hourly chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	0.9999
Today Daily Change	0.0027
Today Daily Change %	0.27%
Today daily open	0.9972

Trends
Daily SMA20	0.993
Daily SMA50	0.9772
Daily SMA100	0.9719
Daily SMA200	0.9571

Levels
Previous Daily High	1.0148
Previous Daily Low	0.9962
Previous Weekly High	1.0148
Previous Weekly Low	0.9919
Previous Monthly High	0.9966
Previous Monthly Low	0.948
Daily Fibonacci 38.2%	1.0033
Daily Fibonacci 61.8%	1.0077
Daily Pivot Point S1	0.9907
Daily Pivot Point S2	0.9841
Daily Pivot Point S3	0.9721
Daily Pivot Point R1	1.0093
Daily Pivot Point R2	1.0213
Daily Pivot Point R3	1.0278

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.

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