USD/CHF technical analysis: Upside capped by 4-week old resistance-line

USD/CHF remains below near-term resistance-line forming part of immediate rising wedge bearish formation.
200-bar SMA, 50% Fibonacci retracement can question pair’s downside below 0.9857/54 confluence.

Anil Panchal FXStreet

USD/CHF fails to extend the latest upward trajectory as it trades near 0.9900 during Asian session on Monday.

While drawing trend-lines with the help of highs and lows marked since August 23, a short-term rising wedge, bearish formation, appears on the four-hour chart. However, the resistance-line can be stretched since early-August levels for further precision.

As a result, 0.9922 acts as a tough upside barrier amid overbought conditions of 14-bar relative strength index (RSI), a break of which can escalate the pair’s rise to July 26 high of 0.9948 ahead of flashing August month top of 0.9968 on buyers’ radar.

During the pair’s pullback, 61.8% Fibonacci retracement of August month downpour and the formation’s lower-line becomes the key support around 0.9857/54, a break of which can drag the quote to 200-bar simple moving average (SMA) and 50% Fibonacci retracement near 0.9818/17.

In a case, prices keep trading southwards past-0.9817, August 25 low near 0.9717 could be bears’ favorite.

USD/CHF 4-hour chart

Trend: pullback expected

Additional important levels

Overview
Today last price	0.9899
Today Daily Change	2 pips
Today Daily Change %	0.02%
Today daily open	0.9897

Trends
Daily SMA20	0.9783
Daily SMA50	0.9828
Daily SMA100	0.9945
Daily SMA200	0.9953

Levels
Previous Daily High	0.9919
Previous Daily Low	0.9858
Previous Weekly High	0.9919
Previous Weekly Low	0.9714
Previous Monthly High	0.9976
Previous Monthly Low	0.9659
Daily Fibonacci 38.2%	0.9896
Daily Fibonacci 61.8%	0.9881
Daily Pivot Point S1	0.9864
Daily Pivot Point S2	0.983
Daily Pivot Point S3	0.9803
Daily Pivot Point R1	0.9925
Daily Pivot Point R2	0.9952
Daily Pivot Point R3	0.9986

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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