USD/CHF technical analysis: Bulls trying to defend previous resistance, now turned support near mid-0.9800s

The USD/CHF pair extended the overnight sharp pullback from six-week tops and remained under some selling pressure for the second consecutive session on Friday.
The pair dropped to fresh weekly lows, albeit now seems to have found some support near a previous descending trend-line resistance breakpoint - around mid-0.9800s.
Given the overnight slump, a subsequent weakness below 200-hour SMA was seen as a key trigger for bearish traders and a follow-through slide on the last day of the week.

Haresh Menghani FXStreet

The global flight to safety, amid resurfacing trade-war fears, underpinned demand for traditional safe-haven currencies – including the Swiss Franc and turned out to be one of the key factors exerting pressure on the major.

Failure to defend the mentioned resistance turned support will set the stage for an extension of the ongoing downfall and accelerate the slide further towards testing sub-0.9800 level - the 0.9785-80 horizontal support.

On the flip side, the 0.9900 handle now becomes immediate resistance, above which the pair is likely to head back the 0.9940 supply zone before eventually darting towards challenging the very important 200-day SMA – around the 0.9975 region. A follow-through buying will negate any negative bias and pave the way for a further near-term appreciating move towards reclaiming the parity mark.

USD/CHF daily chart

USD/CHF

Overview
Today last price	0.9865
Today Daily Change	-0.0036
Today Daily Change %	-0.36
Today daily open	0.9901

Trends
Daily SMA20	0.9884
Daily SMA50	0.99
Daily SMA100	0.9986
Daily SMA200	0.9978

Levels
Previous Daily High	0.9976
Previous Daily Low	0.9887
Previous Weekly High	0.9947
Previous Weekly Low	0.9804
Previous Monthly High	0.9952
Previous Monthly Low	0.978
Daily Fibonacci 38.2%	0.9921
Daily Fibonacci 61.8%	0.9942
Daily Pivot Point S1	0.9867
Daily Pivot Point S2	0.9833
Daily Pivot Point S3	0.9778
Daily Pivot Point R1	0.9955
Daily Pivot Point R2	1.001
Daily Pivot Point R3	1.0044

Author

Haresh Menghani

FXStreet

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

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