- USD/CHF prints mild gains following a retreat from 0.9300 on Thursday.
- The pair is in a continuous uptrend since August 30.
- MACD trades holds onto the overbought zone with receding upside momentum.
USD/CHF trades cautiously on Thursday in the initial Asian trading hours. The pair confides in a narrow trade band of less than 10-pips movement. At the time of writing, USD/CHF is trading at 0.9278, up 0.05% for the day.
USD/CHF daily chart
-637691621369823837.png)
On the daily chart, after testing the five-month high near 0.9368, the USD/CHF pair failed to preserve the momentum and touched the intraday low of 0.9230 this Monday, which also coincides with the ascending trendline. The ascending trendline extends from the low of 0.9101 on August 30. Now, the pair is hovering in a limiting trading range. The sluggish price movement in today’s session suggests that bulls find it difficult to move in an upward direction.
Having said that, if the price sustains below the intraday low, it could immediately test the 21-day Simple Moving Average (SMA) at 0.9258. The Moving Average Convergence Divergence (MACD) trades in the overbought zone with stretched buying conditions. Any downtick in the MACD would amplify the selling opportunities in the pair. The bears could test the 0.9220 horizontal support level, followed by the low made on September 15 at 0.9163.
Alternatively, if the price starts moving higher it could move back to the psychological 0.9300 level. A daily close above 0.9300 could bring the possibility of meeting the 0.9320 horizontal resistance level for USD/CHF bulls followed by a September high (September 30) at 0.9368.
USD/CHF additional levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.