USD/CHF Price Analysis: Stays on the way to 0.9140 support confluence
- USD/CHF holds lower ground after posting the heaviest daily losses in two weeks.
- Convergence of monthly support line, 200-SMA guards short-term downside.
- Multiple levels marked since August 11 challenge recovery moves.
USD/CHF remains on the back foot around 0.9165, down 0.05% intraday during Friday’s Asian session.
The Swiss currency (CHF) pair dropped the most since late August the previous day after reversing from the last monthly high, also breaking down one-month-old horizontal support.
The declines gain support from the descending RSI line to direct the quote towards a convergence of 200-SMA and an upward sloping trend line from August 03, near 0.9140.
However, any further weakness by the USD/CHF prices remains doubtful as the RSI could have reached the oversold area by then, if not the late August lows near the 0.9100 threshold should return to the charts.
On the contrary, recovery moves may aim for the stated horizontal region from August 11, surrounding the 0.9200 round figure.
Though, any further upside past 0.9200 will need to cross the last month’s high of 0.9242 before aiming for July’s peak of 0.9274.
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.
