USD/CHF Price Analysis: Sellers attack key support line below 0.9800 amid looming bear cross
- 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
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.
