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.

AUD/USD hangs near three-week low, below 0.6950 as traders await US NFP report

AUD/USD hits a three-week low during the Asian session on Friday as the RBA’s dovish shift and a rout in equity markets weigh on the risk-sensitive Aussie. However, the recent slump in US bond yields to a two-month low keeps US Dollar bulls on the back foot and limits losses for the currency pair as traders look to the US NFP report for a fresh impetus.

USD/JPY bounces off three-week low; keeps the red near 157.65 as focus remains on US NFP

USD/JPY bounces off the weekly low set during the Asian session, as bears turn cautious ahead of the US NFP report due later this Friday. The upside seems limited as the recent slump in US bond yields and hopes of Iran war de-escalation undermine the US Dollar. Moreover, a hawkish BoJ and intervention risks support the Japanese Yen, capping the pair.

Gold loses the grip; $4,000 comes next on the downside

Gold sets aside two daily advances in a row on Friday, opening the door to a potential test of the key $4,000 mark per troy ounce. The precious metal’s retracement follows a decent improvement in the sentiment surrounding the US Dollar, solid NFP data and higher US Treasury yields across the board.

Democrats win House and Senate in US midterms: Why isn’t all bad news for crypto

The biggest story this week was Tuesday’s US midterm elections, which saw Democrats win control of both the House and the Senate in a clear blue wave. This political shift in the US has triggered sharp price swings across the cryptocurrency market.

Week ahead – Inflation and geopolitics in focus as US political landscape shifts

Post-midterm election euphoria fizzles out as risk aversion prevails. US CPI, PPI and Fedspeak on the radar as Fed hike bets remain supported. Oil retreat pauses on mixed hopes about the ongoing conflicts.

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.