USD/CHF Price Analysis: Teases six-year low inside falling wedge

USD/CHF stays depressed after refreshing multi-month low early in Asia.
Oversold RSI, nearness to wedge’s support line challenge bears.
21-day SMA adds strength to the bullish formation’s resistance.

Anil Panchal FXStreet

USD/CHF remains on the back foot around 0.8780, down 0.06% intraday, after declining to the fresh low since January 2015 during early Wednesday’s trading.

Although sustained trading below 21-day SMA joins US dollar weakness to keep USD/CHF sellers hopeful, support line of a bullish chart pattern, namely falling wedge, challenge the further downside amid oversold RSI conditions.

In a case where the stated trend line, at 0.8743 now, fails to stop USD/CHF bears, early 2014 bottom close to the 0.8700 threshold can entertain them ahead of highlighting 2015 bottom of 0.8365.

Meanwhile, corrective pullback needs to cross December 17 low near 0.8725 before challenging the 21-day SMA and upper line of the stated bullish formation, around 0.8855/60.

It should, however, be noted that an upside break of 0.8860 will signal the theoretical run-up towards the 0.9300 round-figure. During the uptrend, the November low near 0.8980 could be the key to watch.

USD/CHF daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	0.8783
Today Daily Change	-4 pips
Today Daily Change %	-0.05%
Today daily open	0.8787

Trends
Daily SMA20	0.8862
Daily SMA50	0.8991
Daily SMA100	0.906
Daily SMA200	0.9283

Levels
Previous Daily High	0.8819
Previous Daily Low	0.8776
Previous Weekly High	0.8919
Previous Weekly Low	0.8794
Previous Monthly High	0.9093
Previous Monthly Low	0.8794
Daily Fibonacci 38.2%	0.8792
Daily Fibonacci 61.8%	0.8802
Daily Pivot Point S1	0.8769
Daily Pivot Point S2	0.8751
Daily Pivot Point S3	0.8726
Daily Pivot Point R1	0.8812
Daily Pivot Point R2	0.8837
Daily Pivot Point R3	0.8855

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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