USD/CHF technical analysis: 21-DMA exerts downside pressure

USD/CHF pulls back to 23.6% Fibonacci retracement.
21-DMA limits near-term upside.

Anil Panchal FXStreet

Following its U-turn from the 21-day simple moving average (DMA), USD/CHF confronts 23.6% Fibonacci retracement of April-August declines as it takes the bids to 0.9793 ahead of the European session on Wednesday.

While 14-bar relative strength index (RSI) shows normal condition, pair’s sustained run-up beyond 0.9800 enables it to challenge the short-term key DMA level of 0.9811.

It should, however, be noted that the pair’s successful rise above 0.9811 can extend the rise to 38.2% Fibonacci retracement level around 0.9880.

During the pullback, 0.9770 and 0.9740/37 can offer intermediate halts ahead of highlighting 0.9690 horizontal support comprising lows marked in June and also tested during early-month.

USD/CHF daily chart

Trend: Bearish

1. R3 0.9852
2. R2 0.9836
3. R1 0.9807
PP 0.9791
1. S1 0.9762
2. S2 0.9746
3. S3 0.9717

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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