USDCHF Price Analysis: All eyes on 200-DMA support above 0.9600
- USDCHF remains sidelined after falling to the seven-week low.
- Clear break of 100-DMA, three-month-old ascending support line favor bears.
- RSI conditions suggest another bounce off the key 200-DMA.
USDCHF bears take a breather around a two-month low as it seesaws near 0.9635-40 during Friday’s initial Asian session, following the biggest daily fall in five months.
Even so, the Swiss currency (CHF) pair sellers remain hopeful as the quote broke important supports, namely the 100-DMA and an ascending trend line from August, during the previous day’s slump.
As a result, the quote appears vulnerable to testing the 200-DMA support, around 0.9625 by the press time.
However, the nearly oversold RSI conditions seem to challenge the USDCHF pair’s downside past the 200-DMA.
Also acting as a downside filter is the eight-month-old support line and September’s low, respectively around 0.0.9490 and 0.9480.
Meanwhile, recovery remains elusive unless the quote stays below the support-turned-resistance line from August, around 0.9685 by the press time. Following that the 100-DMA level near 0.9745 could challenge the USDCHF buyers.
Overall, the USDCHF pair’s downside break of the previous key support levels confirms its further declines. However, the RSI (14) appears to challenge the quote’s heavy fall, which in turn highlights the 200-DMA as a crucial support.
USDCHF: Daily chart
Trend: Limited downside expected
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.
