USD/CHF technical analysis: Breaks below weekly ascending trend-channel support ahead of Powell


  • The USD/CHF pair stalled its strong positive move and witnessed a dramatic intraday turnaround from three-week tops in reaction to China's retaliatory tariffs on $75 billion worth of US goods.
  • The sharp intraday pullback has now dragged the pair farther below a support marked by the lower end of weekly ascending trend-channel and already seems to have confirmed a bearish breakdown.

Meanwhile, technical indicators on the 1-hourly chart quickly drifted into the bearish territory and have been losing positive momentum on 4-hourly/daily charts, further adding credence to the negative outlook and setting the stage for an extension of the corrective slide.
 
A follow-through weakness below the 0.9800 handle will reinforce the bearish set-up and turn the pair vulnerable to accelerate the slide further towards 0.9775 horizontal zone en-route weekly lows - around the 0.9760 region - and ahead of the 0.9730 support area.
 
On the flip side, the ascending trend-channel support breakpoint - around mid-0.9800s - now becomes immediate resistance, above which a bout of short-covering might assist the pair to aim back towards the trend-channel resistance - currently near the 0.9880-85 region.

USD/CHF 1-hourly chart

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USD/CHF

Overview
Today last price 0.984
Today Daily Change 0.0003
Today Daily Change % 0.03
Today daily open 0.9837
 
Trends
Daily SMA20 0.9807
Daily SMA50 0.9839
Daily SMA100 0.9956
Daily SMA200 0.9957
Levels
Previous Daily High 0.9845
Previous Daily Low 0.9813
Previous Weekly High 0.981
Previous Weekly Low 0.9659
Previous Monthly High 0.9952
Previous Monthly Low 0.978
Daily Fibonacci 38.2% 0.9833
Daily Fibonacci 61.8% 0.9825
Daily Pivot Point S1 0.9818
Daily Pivot Point S2 0.98
Daily Pivot Point S3 0.9786
Daily Pivot Point R1 0.985
Daily Pivot Point R2 0.9864
Daily Pivot Point R3 0.9882

 

 

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