USD/CHF technical analysis: Breaks below 0.9940 confluence support, turns vulnerable

The pair remains under some selling pressure for the second straight session.
The ongoing slide dragged it below a two-month-old ascending trend-channel.
Bears might now aim towards challenging the 0.9900 round-figure mark.

Haresh Menghani FXStreet

The USD/CHF pair extended this week's rejection slide from the vicinity of the key parity mark and remained under some selling pressure for the second consecutive session.

The ongoing slide to one-week lows has now dragged the pair below a confluence support near the 0.9940 region, which might now be seen as a key trigger for bearish traders.

The mentioned support comprised of 23.6% Fibonacci level of the pair’s 0.9659-1.0028 recent strong move up and the lower end of a two-month-old ascending trend-channel.

Meanwhile, technical indicators on the 4-hourly chart have been falling in the bearish territory and also lost positive momentum on the daily chart, suggesting further downside.

However, oscillators on the 1-hourly chart have moved closer to slightly oversold conditions and thus, warrant some caution before placing any aggressive bearish bets.

Having said that, the pair still seems vulnerable to continue with its depreciating move and aim towards challenging the 0.9900 handle amid reviving safe-haven demand.

USD/CHF daily chart

USD/CHF

Overview
Today last price	0.9933
Today Daily Change	-0.0017
Today Daily Change %	-0.17
Today daily open	0.995

Trends
Daily SMA20	0.9943
Daily SMA50	0.988
Daily SMA100	0.9879
Daily SMA200	0.9956

Levels
Previous Daily High	0.9992
Previous Daily Low	0.9945
Previous Weekly High	0.9991
Previous Weekly Low	0.9904
Previous Monthly High	0.9988
Previous Monthly Low	0.9797
Daily Fibonacci 38.2%	0.9963
Daily Fibonacci 61.8%	0.9974
Daily Pivot Point S1	0.9933
Daily Pivot Point S2	0.9915
Daily Pivot Point S3	0.9886
Daily Pivot Point R1	0.998
Daily Pivot Point R2	1.0009
Daily Pivot Point R3	1.0027

Author

Haresh Menghani

FXStreet

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

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD holds steady near 1.1650 ahead of US data

EUR/USD stabilizes near 1.1650 on Friday after facing a rejection once again near seven-week highs. The pair, however, continues to draw support from persistent US Dollar weakness, despite a cautious market mood. Traders now await the US September PCE inflation and UoM Consumer Sentiment data.

GBP/USD clings to gains in 1.3350 region, eyes on US data

GBP/USD sticks to a positive bias near 1.3350 in the second half of the day on Friday. Traders prefer to wait on the sidelines ahead of the key US inflation and sentiment data due later in the day. In the meantime, broad-based US Dollar weakness helps the pair stay afloat.

Gold remains below $4,250 as traders await key US data

Gold gains some positive traction on Friday and trades in the upper half of its weekly range. Dovish Fed expectations continue to undermine the USD and lend support to the commodity. Bulls, however, might opt to wait for the US PCE Price Index before placing aggressive bets.