USD/CHF Technical Analysis: 5-week-old triangle can limit declines below 200-bar SMA
- USD/CHF fails to extend uptick beyond 200-bar SMA, 50% Fibonacci retracement.
- The symmetrical triangle continues to favor sideways momentum.
The USD/CHF pair is bearish after failing to break 200-bar SMA and retracing 50% Fibonacci. That said, a month-old symmetrical triangle could restrict the pair’s near-term moves. The quote takes the rounds to 0.9910 by the press time of the pre-European session on Thursday.
Given the quote’s latest slip beneath key technical levels, prices are likely to revisit the support line of the five-week-old symmetrical triangle formation, at 0.9870. A break of this level will open the doors for the additional pair weakness towards October month low near 0.9835 and the September bottom close to 0.9800.
On the contrary, 200-bar Simple Moving Average (SMA) around 0.9920 and 50% Fibonacci retracement level of October month declines, at 0.9935, could keep buyers await.
In a case of pair’s rise past-0.9935, 61.8% Fibonacci retracement and the triangle’s resistance can question bulls around 0.9955 and 0.9975 respectively. Though, a sustained run-up past-0.975 enables the optimists to aim for 1.0000 and 1.0030.
USD/CHF 4-hour chart
Trend: Sideways
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.
