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USD/CHF technical analysis: Bulls struggle to extend the recovery beyond 0.9900 handle

  • Renewed US-China trade optimism helped regain some traction.
  • The uptick lacked bullish conviction and warrants some caution.

The USD/CHF pair stalled its recent pullback from levels beyond 200-day SMA and regained some traction on the last trading day of the week. Renewed trade optimism weighed on the Swiss franc's safe-haven status and led to a modest recovery, though bulls struggled to extend the momentum beyond the 0.9900 handle.
 
On the daily chart, the pair has been oscillating between two converging trend-lines over the past two months or so and now seemed to have formed a symmetrical triangle. Meanwhile, oscillators on 4-hourly/daily charts have been recovering but struggled for a firm direction, warranting some caution for aggressive traders.
 
Given the pair's repeated failures to find acceptance above a technically significant moving average, the near-term bias might favour bearish traders. However, the fact that the pair has been forming higher lows makes it prudent to wait for a sustained break through the triangle support, currently near the 0.9860-55 region.
 
The mentioned support also nears 50% Fibonacci retracement level of the 0.9659-1.0027 positive move and should act as a key pivotal point for short-term traders. Below the said support, the pair might turn vulnerable to break below the 0.9800 handle and aim towards testing its next major support near the 0.9720 region.
 
On the flip side, immediate resistance is pegged near the 0.9925-30 region (23.6% Fibo. level) and is closely followed by mid-0.9900s (200-DMA), which if cleared should assist the pair to make a fresh attempt to reclaiming the parity mark and head towards challenging the 1.0025-30 supply zone in the near term.

USD/CHF daily chart

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USD/CHF

Overview
Today last price0.9895
Today Daily Change0.0008
Today Daily Change %0.08
Today daily open0.9887
 
Trends
Daily SMA200.9908
Daily SMA500.9924
Daily SMA1000.988
Daily SMA2000.9953
 
Levels
Previous Daily High0.9909
Previous Daily Low0.9869
Previous Weekly High0.998
Previous Weekly Low0.9852
Previous Monthly High1.0028
Previous Monthly Low0.9837
Daily Fibonacci 38.2%0.9884
Daily Fibonacci 61.8%0.9894
Daily Pivot Point S10.9868
Daily Pivot Point S20.9848
Daily Pivot Point S30.9828
Daily Pivot Point R10.9908
Daily Pivot Point R20.9928
Daily Pivot Point R30.9948

Author

Haresh Menghani

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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