USD/CHF Price Analysis: Intraday positive move stalls near the 0.9590 confluence region
- USD/CHF finds decent support near 0.9500 mark and snaps four days of losing streak.
- The set-up warrants some caution before positioning for any further recovery move.
The USD/CHF pair found a decent support near the key 0.9500 psychological mark and staged a goodish recovery on the first day of a new trading week, snapping four consecutive days of losing streak.
The positive move lifted the pair to a short-term descending trend-channel breakpoint, turned resistance, which coincides with 50-hour SMA and 23.6% Fibonacci level of the 0.9902-0.9502 downfall.
The mentioned confluence region might now act as a key pivotal point for short-term traders, above which the recovery momentum could further get extended towards 38.2% Fibo., around mid-0.9600s.
Given that oscillators on 4-hourly/daily charts are yet to confirm bullish bias, neutral technical indicators on the 1-hourly chart warrant some caution before positioning for any further appreciating move.
Hence, it will be prudent to wait for some strong follow-through buying before confirming that the pair might have already bottomed out in the near-term and stalled the recent pullback from multi-month.
On the flip side, the 0.9500 mark might continue to protect the immediate downside, which if broken might be seen as a fresh trigger for bearish traders and set the stage for an extension of the downtrend.
USD/CHF 1-hourly chart
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Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
