USD/CHF Price Analysis: Sellers need to break 0.9780 support for entry

USD/CHF prints three-day downtrend to extend pullback from monthly peak.
Three-week-old ascending support line holds the gate for bears.
Downside break of 20-SMA, bearish MACD signals hint at further downside.
Buyers need to cross immediate resistance line to retake control.

Anil Panchal FXStreet

USD/CHF remains pressured near the intraday low of 0.9785 as bears approach the short-term key support line during Tuesday’s initial Asian session. In doing so, the Swiss currency (CHF) pair portrays a three-day downtrend while extending Friday’s pullback from the highest levels since mid-July.

That said, the quote’s latest weakness takes clues from the bearish MACD signals, downbeat RSI (14) and its break of the 20-SMA support, now resistance around 0.9810.

However, the sellers need validation from an upward slopping support line from early August, at 0.9780 by the press time, to welcome USD/CHF bears.

Following that, a downward trajectory towards the 38.2% Fibonacci retracement level of the pair’s upside from August 11 to September 01 can’t be ruled out.

Meanwhile, the 20-SMA hurdle surrounding 0.9810 precedes the immediate resistance line from the last Thursday, close to 0.9830 at the latest, to restrict the short-term recovery of the USD/CHF pair. Also acting as an upside filter is the monthly peak surrounding 0.9860.

Overall, USD/CHF remains on the bear’s radar but the 0.9780 could work as a trigger for the fresh selling.

USD/CHF: Four-hour chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	0.9791
Today Daily Change	-0.0020
Today Daily Change %	-0.20%
Today daily open	0.9811

Trends
Daily SMA20	0.9602
Daily SMA50	0.9634
Daily SMA100	0.9682
Daily SMA200	0.9462

Levels
Previous Daily High	0.986
Previous Daily Low	0.9784
Previous Weekly High	0.9861
Previous Weekly Low	0.9658
Previous Monthly High	0.9808
Previous Monthly Low	0.9371
Daily Fibonacci 38.2%	0.9813
Daily Fibonacci 61.8%	0.9831
Daily Pivot Point S1	0.9776
Daily Pivot Point S2	0.9742
Daily Pivot Point S3	0.9701
Daily Pivot Point R1	0.9852
Daily Pivot Point R2	0.9894
Daily Pivot Point R3	0.9928

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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