USD/CHF technical analysis: Bulls trying to defend multi-week old ascending trend-channel
- Fading safe-haven demand undermined the CHF demand and extended some support.
- Bears await a sustained weakness below short-term ascending channel support.
The USD/CHF pair struggled to register any meaningful recovery and remained well within the striking distance of near three-week lows set in the previous session, coinciding with the lower end of a multi-week-old ascending trend-channel.
Given that technical indicators on hourly charts maintained their bearish bias and have just started drifting into the negative territory on the daily chart, any follow-through selling will set the stage for an extension of the recent downward trajectory.
However, traders are likely to wait for a sustained break through the mentioned trend-channel support before positioning for any further depreciating move amid US-China trade optimism, which tends to weigh on the Swiss Franc's safe-haven status.
Meanwhile, any subsequent downfall is likely to find some support near the 0.9800 handle, which if broken will reaffirm a near-term bearish breakdown and pave the way for a further near-term slide towards the 0.9730-25 support area.
On the flip side, the 0.9900 round-figure mark now seems to act as an immediate resistance, above which the pair is likely to surpass the very important 200-day SMA and aim to retest the recent swing highs - around the 0.9985 region.
The momentum could further get extended towards challenging the trend-channel resistance, levels just above the key parity mark, above which bulls are likely to regain control and continue driving the pair higher in the near-term.
USD/CHF daily chart
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Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
