USD/CHF Price Analysis: Stays pressured towards 100-DMA near five-week low
- USD/CHF holds lower ground at mid-September lows, sidelined of late.
- Descending RSI line, weekly falling trend line favor sellers.
- 200-DMA, ascending trend line from early June offer strong support.
USD/CHF remains on the back foot around 0.9185, taking rounds to a five-week low flashed during the early week amid Thursday’s Asian session.
The Swiss currency (CHF) pair dropped the most in a week the previous day while printing a two-day south-run backed by a downward sloping RSI line, also taking a u-turn from the one-week-old resistance line.
Hence, the USD/CHF bears are all set to attack the nearby support, namely the 100-DMA level of 0.9177.
However, any further weakness past 100-DMA will be challenged by a convergence of 200-DMA and a four-month-long support line, close to 0.9140, a break of which will give way to the USD/CHF sellers targeting mid-August lows near the 0.9100 threshold.
Alternatively, the 0.9200 round figure and stated immediate resistance line, close to 0.9240, will question the short-term upside momentum of the pair.
In a case where USD/CHF bulls manage to cross 0.9240, July’s top and September 20 peak, respectively around 0.9275 and 0.9335, will be crucial levels to watch.
USD/CHF: Daily 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.
