USD/CHF Price Analysis: Aims violation of 61.8% Fibo retracement at 0.9690
|- The greenback bulls face barricades around 61.8% Fibo retracement at 0.9690.
- The 20-EMA at 0.9633 is acting as major support for the counter.
- A bullish flag formation is hinting at the continuation of the upside after a balanced profile.
The USD/CHF pair is displaying a lackluster performance after an upside move in the Asian session. The pair has turned sideways after a firmer rebound to near 0.9630. A rangebound move in the 0.9634-0.9643 range is expected to continue further as investors are awaiting fresh impetus from Federal Reserve (Fed) chair Jerome Powell’s commentary at Jackson Hole Economic Symposium.
On a four-hour scale, the asset has sensed barricades around 61.8% Fibonacci retracement (placed from July 14 high at 0.9886 to August 11 low at 0.9671) at 0.9690.
A Bullish Flag formation on a four-hour scale is underpinning the greenback bulls. The formation of a Bullish Flag denotes a consolidation phase after a vertical upside move. The north-side sheer move is been recorded from May’s low at 75.98. The consolidation phase of a Bullish Flag indicates an initiative buying structure in which the buyers initiate longs after the establishment of a bullish bias.
The 20-and 50-period Exponential Moving Averages (EMAs) at 0.9633 and 0.9600 respectively are aiming higher, which adds to the upside filters.
Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the 40.00-60.00 range ut that doesn’t resemble a bearish reversal.
A decisive move above 61.8% Fibo retracement at 0.9690 will drive the asset towards July 21 high at 0.9740, followed by July 18 high at 0.9790.
Alternatively, the Swiss franc bulls could drag the asset to near 38.2% Fibo retracement and August 8 low at 0.9568 and 0.9522 respectively if the asset drops below 50-EMA at 0.9600.
USD/CHF four-hour chart
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