- USD/CHF is poised for further decline on the daily chart.
- USD/CHF 4-Hour chart suggests consolidation, but a bearish continuation could happen below 0.8859.
- Bearish oscillators with oversold RSI may lead to an upward correction.
USD/CHF extended to new year-to-date (YTD) lows for the second straight day at 0.8859, though it rebounded slightly but remained below the psychological resistance at 0.8900. Fundamentals pointing the US economy toward a strong deceleration and a possible US Federal Reserve (Fed) pivot are the main reasons pressuring the American Dollar (USD). Therefore, the USD/CHF is trading at 0.8882 after hitting a high of 0.8974.
USD/CHF Price Action
From a daily chart perspective, the USD/CHF might continue to fall further, though buyers stepped in at around 0.8871, the February 16 cycle low. Although the USD/CHF fell beyond the latter, it bounced strongly, as USD/CHF bulls look forward to reclaiming the 0.8900 figure.
Short term, the USD/CHF 4-Hour chart suggests the pair is consolidating once it formed a doji, just below the S2 daily pivot point around 0.8888. For a bearish continuation, the USD/CHF needs to dive below 0.8859 to extend its losses toward the S3 pivot point at 0.8832, ahead of falling to 0.8800.
Although oscillators like the Relative Strength Index (RSI) and the Rate of Change (RoC) maintain a bearish bias, the RSI is in oversold territory. Hence, an upward correction is likely, though buyers must reclaim the 0.8900 figure.
Once achieved, the USD/CHF next resistance would bet the S1 pivot point at 0.8925, followed by the confluence of the daily pivot point and the 20-day EMA at 0.8975/80 before testing 0.9000.
USD/CHF 4-Hour chart
USD/CHF Technical Levels
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