USD/CHF technical analysis: The ongoing corrective slide challenges 200-hour SMA support, around mid-0.9800s

Extends overnight retracement slide from an ascending trend-channel resistance.
A follow-through selling has the potential to drag the pair towards channel support.

Haresh Menghani FXStreet

The USD/CHF pair remained under some selling pressure for the second consecutive session on Wednesday and retreated farther from over one-month tops set in the previous session.

The pair on Tuesday started retreating from a resistance marked by the top end of a short-term ascending trend-channel, extending from multi-month lows touched on August 13th.

The pullback, however, seems to have found some support near 200-hour SMA, which should now act as a key pivotal point and help traders to position for the pair's intraday movement.

Meanwhile, technical indicators on hourly charts have been gaining negative traction and losing positive momentum on the daily chart, supporting prospects for an extension of the corrective slide.

A sustained break below the mentioned support – currently near the 0.9845 region – will reaffirm the intraday bearish bias and set the stage for a slide back towards challenging the 0.9800 handle.

The downfall could further get extended towards the lower end of the mentioned trend-channel, around the 0.9775-70 region, which if broken will pave the way for further depreciating move.

On the flip side, immediate resistance is now pegged near the 0.9860-65 region, above which the pair is likely to aim towards reclaiming the 0.9900 handle en-route the channel resistance near 0.9935 area.

USD/CHF 1-hourly chart

USD/CHF

Overview
Today last price	0.9851
Today Daily Change	-0.0016
Today Daily Change %	-0.16
Today daily open	0.9867

Trends
Daily SMA20	0.9797
Daily SMA50	0.9834
Daily SMA100	0.9942
Daily SMA200	0.9952

Levels
Previous Daily High	0.993
Previous Daily Low	0.9862
Previous Weekly High	0.9919
Previous Weekly Low	0.9714
Previous Monthly High	0.9976
Previous Monthly Low	0.9659
Daily Fibonacci 38.2%	0.9888
Daily Fibonacci 61.8%	0.9904
Daily Pivot Point S1	0.9843
Daily Pivot Point S2	0.9818
Daily Pivot Point S3	0.9775
Daily Pivot Point R1	0.9911
Daily Pivot Point R2	0.9954
Daily Pivot Point R3	0.9979

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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