USD/CHF Technical Analysis: Confirms a near-term bearish breakdown

Haresh Menghani FXStreet

• The pair, this week, repeatedly failed to make it through a short-term descending trend-line resistance, extending from 14-month tops set on July 12.

• Today's rejection from 100-hour SMA, leading to a subsequent fall below 200-hour and 50-day SMA, prompted some aggressive long-unwinding/fresh selling pressure.

• The ongoing downfall confirms a near-term bearish breakdown, albeit oversold technical indicators on the 1-hourly chart could be the only factor helping limit deeper losses.

USD/CHF 1-hourly chart

Spot Rate: 0.9900
Daily High: 0.9951
Trend: Bearish

Resistance
R1: 0.9925 (50-day SMA)
R2: 0.9951 (current day swing high)
R3: 0.9985 (weekly tops set on Monday)

Support
S1: 0.9871 (S3 daily pivot-point)
S2: 0.9852 (100-day SMA)
S3: 0.9800 (round figure mark)

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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