- USD/CHF takes the bids near intraday high, extends recovery moves from Friday.
- A clear break above 100-bar, 200-bar SMAs favors the bulls amid upbeat RSI, MACD.
- Two-week-old support line adds to the downside filters.
USD/CHF rises to 0.8890 in the latest upswing ahead of Tuesday’s European session. While risk-off mood favors the US dollar strength and the quote’s upside, a downward sloping trend line from January 17 probes the bulls.
Read: S&P 500 futures drop further as China says to conduct military drills in South China Sea
Should the quote rallies past-0.8895 immediate hurdle, which is also backed by bullish MACD signals and strong RSI, the monthly top near 0.8930 should be the spotlight.
It should, however, be noted that multiple peaks marked since late December can probe the USD/CHF buyers around 0.8930, a break of which will escalate the run-up towards early November low near 0.8980.
On the flip side, a confluence of 100-bar and 200-bar SMA near 0.8860 restricts the pair’s short-term downside ahead of a descending trend line from January 13, at 0.8835.
January 08 low close to 0.8820 and the monthly bottom surrounding 0.8755 is extra supports that USD/CHF sellers may target during further weakness past-0.8835.
Overall, the quote is likely to escalate the consolidation of losses marked in December amid the worsening market sentiment.
USD/CHF four-hour chart
Trend: Further upside 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 drops below 1.0800 after German Retail Sales data
EUR/USD has come under fresh selling pressure and trades below 1.0800 after the data from Germany showed that Retail Sales declined by 1.9% MoM in February. Resurgent US Dollar demand is adding to the downside in the pair. US data are next in focus.
GBP/USD stays weak near 1.2600 amid market caution
GBP/USD remains defensive near 1.2600 in European trading on Thursday. The hawkish tone from Fed Governor Christopher Waller keeps the US Dollar afloat amid a cautious trading environment ahead of key US data releases and the Good Friday trading lull.
Gold price holds strength ahead of US core PCE inflation
Gold price holds onto gains near $2,200 in Thursday’s European session. The precious metal exhibits firm footing ahead of the United States core PCE Price Index data for February, which will be published on Friday.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.