- USD/CHF pauses three-day downtrend near the fortnight-old support line.
- Bearish MACD signals join immediate resistance line to keep sellers hopeful.
- 100-SMA’s clear downside break of 200-SMA could reject short-term bullish bias.
USD/CHF pokes a two-week-old support line on its way to post the first weekly loss in three, pressured near 0.9760 heading into Friday’s European session.
It’s worth noting that the bearish MACD signals and an impending bear cross between the 100-SMA and the 200-SMA favor the pair sellers of late. That said, the bear cross is a moving average crossover that suggests further downside when short-term SMA dips beneath the longer-term moving average.
However, a clear downside break of the aforementioned support line, at 0.9745 by the press time, becomes necessary for the USD/CHF bears to keep the reins. Even so, the convergence of the stated SMAs could test the downside move near 0.9700 before giving control to the sellers.
On the flip side, a downward slopping resistance line from Wednesday, close to 0.9800 by the press time, guards the quote’s immediate recovery.
Following that, the early September peak surrounding 0.9870 could challenge the USD/CHF bulls before directing them to the monthly high of 0.9965.
In a case where the pair buyers stay hopeful past 0.9965, the 1.0000 psychological magnet will be in focus.
USD/CHF: Four-hour chart
Trend: Further weakness 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 hold comfortably above 1.0750 as USD recovery loses steam
EUR/USD clings to small daily gains above 1.0750 in the early American session on Monday. In the absence of high-tier data releases, the US Dollar finds it difficult to gather recovery momentum and helps the pair hold its ground.
GBP/USD struggles to find direction, holds near 1.2550
GBP/USD stays under modest bearish pressure and trades near 1.2550 on Tuesday. The neutral risk mood, as reflected by the mixed action seen in US stocks, doesn't allow the pair to make a decisive move in either direction. The Bank of England will announce policy decisions on Thursday.
Gold rebounds to $2,320 as US yields edge lower
After falling to $2,310 in the early European session, Gold recovered to the $2,310 area in the second half of the day. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.5% and helps XAU/USD find support.
Ripple lawsuit develops with SEC reply under seal, XRP holders await public redacted versions
Ripple lawsuit’s latest development is SEC filing, under seal. The regulator has filed its reply brief and supporting exhibits and the documents will be made public on Wednesday, May 8.
The impact of economic indicators and global dynamics on the US Dollar
Recent labor market data suggest a cooling economy. The disappointing job creation and rising unemployment hint at a slackening demand for labor, which, coupled with subdued wage growth, could signal a slower economic trajectory.