USD/CHF Price Analysis: Fades bounce off 200-DMA above 0.9600
- USD/CHF struggles to extend the previous day’s run-up, remains sidelined of late.
- Bearish MACD signals, 50-DMA challenge buyers amid sluggish session.
- Multiple barriers to test sellers before directing them to yearly low.
USD/CHF bulls take a breather around 0.9610, after rising the most in three months the previous day. In doing so, the Swiss currency (CHF) pair fails to extend the bounce off the 200-DMA during Wednesday’s sluggish Asian session.
That said, the bearish MACD signals and the failure to cross the 38.2% Fibonacci retracement level of June-August declines, around 0.9630, appear to lure the intraday sellers of the USD/CHF pair. Also acting as an immediate hurdle is the 50-DMA level near 0.9650.
In a case where the USD/CHF price rises beyond 0.9650, the 50% and the 61.8% Fibonacci retracement levels, around 0.9715 and 0.9795 respectively, could test the bulls before directing them to the key horizontal resistance area established in June near 0.9870-85.
Meanwhile, pullback moves could initially aim for the 23.6% Fibonacci retracement level near 0.9530 ahead of revisiting the 200-DMA support close to 0.9480.
Following that, the 0.9400 threshold and the previous monthly low near 0.9370 could entertain the USD/CHF bears before directing them to the yearly bottom surrounding 0.9090.
Overall, USD/CHF bulls need validation from the 50-DMA to retake control.
USD/CHF: Daily chart
Trend: Pullback 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.
