- USD/CHF takes offers to extend week-start reversal from 1.5-month high.
- U-turn from multi-month-old resistance line, downside break of immediate rising trend line favor Swiss Franc pair sellers.
- 200-SMA lures short-term sellers; bulls need validation from 0.8830.
USD/CHF takes offers to extend the previous week’s U-turn from a multi-day-old resistance line amid early Tuesday, down 0.10% intraday near 0.8775 by the press time.
In doing so, the Swiss Franc (CHF) pair cheers the downside break of a one-month-long rising trend line support, now immediate resistance near 0.8790.
The trend line breakdown joins the downward-sloping RSI (14) line, not oversold, to also strengthen the bearish bias about the USD/CHF pair.
As a result, the sellers are all set to revisit the 200-SMA support of around 0.8725 before poking the 0.8700 round figure.
However, multiple levels marked during the late July highlight 0.8690 and 0.8630 will challenge the USD/CHF sellers afterward.
Meanwhile, the pair’s recovery past 0.8790 support-turned-resistance needs validation from the 0.8800 round figure and a downward-sloping resistance line from May 31, close to 0.8815 by the press time.
Following that, the double tops marked on August 14 and 21 around 0.8830 may act as the final defense of the USD/CHF bears ahead of directing the buyers toward June’s bottom surrounding 0.8900.
Overall, USD/CHF remains on the bear’s radar even if the road toward the south appears long and bumpy.
USD/CHF: Four-hour chart
Trend: Further downside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays depressed below 1.1000 on tepid risk sentiment
EUR/USD is trading on the backfoot below 1.1000 in the early European session on Wednesday, as the US Dollar clings to recovery gains amid lingering Chinese economic concerns and the Middle East escalation. The focus now stays on the ECB/ Fed-speak and the FOMC Minutes.
GBP/USD sits at multi-week low below 1.3100, awaits FOMC minutes
GBP/USD struggles to capitalize on the previous recovery, staying defensive below 1.3100 in early Europe on Wednesday. The US Dollar consolidates recent gains amid risk aversion, awaiting the Fed Minutes for a fresh directional impetus in the pair.
Gold price struggles to lure buyers as smaller Fed rate cut bets underpin USD
Gold price remains under some selling pressure for the sixth successive day on Wednesday and is currently placed just above a three-week low, around the $2,605-2,604 region touched the previous day.
Bitcoin shows signs of weakness
Bitcoin is hovering at a critical support level, and a drop below it could signal a downturn, while Ethereum and Ripple are approaching important resistance levels, where a rejection might indicate a shift towards bearish momentum.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.