- The Swiss franc advanced during the New York session some 0.28%.
- USD/CHF’s downward move was capped at an upslope trendline respected three previous times.
- USD/CHF had a bearish bias, though upside risks remain.
At press time, as the New York session ends, the USD/CHF pair slides to a new seven-week low, trading at 0.9146. On Wednesday, Swiss franc bulls decisively breached the 200-day moving average (DMA), at 0.9176, the previous support-now-turned dynamic resistance level.
USD/CHF downward move was capped by an upslope trendline
Despite the aforementioned, the USD/CHF freefall was limited by an upslope trendline in the 0.9140-50 area. Why? Because after reaching a daily low beneath the abovementioned at 0.9127, the pair jumped aggressively towards current levels, emphasizing the strength of the trendline.
Nevertheless, once all the daily moving averages (DMAs) reside above the spot price, the bias is downwards, but it would face crucial demand areas on the way down.
USD/CHF’s first support level would be the upslope trendline around 0.9140. A break of that level would expose medium support at the November 9 daily low at 0.9108, followed by strong support at the November 2 swing low at 0.9085.
On the flip side, USD/CHF’s failure to break under the upslope trendline could open the door for USD bulls to reclaim the 200-DMA. The first resistance would be the 200-DMA at 0.9176. A break above that level would expose the 50-DMA at 0.9208 and then the 100-DMA at 0.9213.
USD/CHF Daily chart
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