USD/CHF Price Analysis: Stays bearish below 0.9100 despite latest inaction
- USD/CHF retreats towards intraday low, eyes first weekly loss in five.
- Lower high prices join downbeat RSI (14) line, bearish MACD signals to keep sellers hopeful.
- One-month-old rising trend line, 100-SMA prod Swiss Franc (CHF) buyers.
USD/CHF clings to mild losses near 0.9070 as it fades bounce off the intraday low early Wednesday. In doing so, the Swiss Franc (CHF) pair struggles for clear directions while staying between the key support line stretched from March and a one-week-long descending resistance line. It should be noted that the quote fades bounce off the 100-SMA, poked the previous day.
Bearish MACD signals join the lower high formation on the RSI (14) line and the USD/CHF price to suggest the pair’s further downside.
However, a clear break of the aforementioned support line, near 0.9055 by the press time, becomes necessary for the USD/CHF bear’s entry. Even so, the 100-SMA support of 0.9037 can act as an additional check for the pair sellers.
Following that, a downward trajectory towards the 0.9000 psychological magnet and then to the 200-SMA level of around 0.8975 can be expected.
On the flip side, USD/CHF buyers need to cross a downward-sloping resistance line from the previous Wednesday, near 0.9105 as we write, to retake control.
In that case, the Swiss Franc (CHF) pair may challenge the previous monthly high of around 0.9150 before eyeing the yearly peak marked in March around 0.9440.
USD/CHF: Four-hour chart
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Trend: Further downside 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.
