- USD/CHF stays pressured after reversing from one-week high the previous day.
- Failure to cross 100-EMA, easing bullish bias of MACD lures Swiss Franc buyers inside bearish megaphone formation.
- Two-month-old previous resistance line lures intraday sellers; bulls need 200-EMA breakout to convince markets.
USD/CHF remains depressed below 0.8900, down for the second consecutive day, as it retreats from the 200-EMA hurdle heading into Tuesday’s European session.
Apart from taking a U-turn from the 200-Exponential Moving Average (EMA), the easing bullish bias of the MACD and the pair’s sustained trading within a three-week-old bearish megaphone trend-widening chart pattern also keeps the USD/CHF sellers hopeful.
That said, the Swiss Franc (CHF) pair bears may initially aim for the previous resistance line from March 08, now immediate support near 0.8840.
Following that, the stated megaphone’s bottom line, around 0.8810 at the latest, quickly followed by the 0.8800 round figure, can test the USD/CHF bears.
On the flip side, USD/CHF pair’s rebound can challenge the 100-EMA hurdle of surrounding 0.8930.
In a case where the Swiss Franc (CHF) sellers manage to keep the reins past 0.8930, the stated megaphone’s top line and the 200-EMA, respectively near 0.8980 and the 0.9000 round figure, can act as the last defense of the USD/CHF bears.
Should the USD/CHF buyers manage to hold the line after 0.9000, the mid-March low and the previous monthly high, around 0.9070 and 0.9200 in that order, should gain their attention.
Overall, USD/CHF is likely to remain pressured but the downside room appears limited.
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
AUD/USD: Rebound remains well in place
AUD/USD capitalised on the renewed offered stance in the US Dollar and managed to derive extra strength, adding to Monday’s upbeat session and advancing past the key 0.6300 barrier.
EUR/USD: Recovery does not look convincing
EUR/USD faded the initial optimism and returned to the sub-1.0800 region despite the resurgence of some acceptable selling pressure in the Greenback and a generalised improved sentiment in the risk-related galaxy.
Gold hovers around $3,020, bulls return
Gold preserves its bullish momentum and trades above $3,030 on Tuesday. The broad-based US Dollar weakness on weak macroeconomic data releases help XAU/USD push higher as investors remain focused on geopolitical and tariff headlines.
What does $5 billion in open interest mean for Solana price forecast in April 2025?
Solana (SOL) continues to defy marketwide bearish sentiment, surging past $145 as open interest crosses the $5 billion mark.
Seven Fundamentals for the Week: Tariff news, fresh surveys, the Fed's preferred inflation gauge are eyed Premium
Reports and rumors ahead of Trump’s reciprocal tariffs announcement next week will continue moving markets. Business and consumer surveys will try to gauge where the US economy is heading. Core PCE, the Fed's preferred inflation gauge, is eyed late in the week.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.