USD/CHF Price Analysis: Rejected at 0.94, bear flag on 4H

USD/CHF is under pressure in Asia as US index futures are flashing red.
The pair has created a bear flag or a bearish continuation pattern on the 4-hour chart.

Omkar Godbole FXStreet Contributor

USD/CHF is currently trading at 0.9364, representing a 0.38% drop on the day, having failed to chew through offers around 0.94 during the overnight trade.

The anti-risk CHF is drawing bids in Asia, possibly tracking the S&P 500 futures, which are currently signaling risk aversion with a 2.25% drop.

From a technical perspective, the pair's bounce from Monday's low of 0.9182 to 0.94 has taken the shape of a bear flag, a bearish continuation setup, on the 4-hour chart.

A break below 0.93 (lower end of the flag) would confirm an end of the recovery rally and revival of the bearish trend from recent highs above 0.98 and could yield re-test of Monday'slow of 0.9182.

However, a flag breakdown will likely remain elusive, if the spot finds acceptance above 0.94. That could be seen if the global equities extend Tuesday's recovery rally, which was reportedly fueled by expectations for fresh US fiscal stimulus.

4-hour chart

Trend: Bearish

Technical levels

USD/CHF

Overview
Today last price	0.9365
Today Daily Change	-0.0037
Today Daily Change %	-0.39
Today daily open	0.9402

Trends
Daily SMA20	0.9669
Daily SMA50	0.969
Daily SMA100	0.9786
Daily SMA200	0.983

Levels
Previous Daily High	0.9412
Previous Daily Low	0.924
Previous Weekly High	0.9656
Previous Weekly Low	0.9318
Previous Monthly High	0.9851
Previous Monthly Low	0.9609
Daily Fibonacci 38.2%	0.9346
Daily Fibonacci 61.8%	0.9306
Daily Pivot Point S1	0.9291
Daily Pivot Point S2	0.9179
Daily Pivot Point S3	0.9118
Daily Pivot Point R1	0.9463
Daily Pivot Point R2	0.9524
Daily Pivot Point R3	0.9635

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD challenges 1.1800, two-week lows

EUR/USD remains on the defensive, extending its leg lower to the vicinity of the 1.1800 region, or two-week lows, on Tuesday. The move lower comes as the US Dollar gathers further traction ahead of key US data releases, inclusing the FOMC Minutes, on Wednesday.

GBP/USD falls below 1.3550, pressured by weak UK jobs report

GBP/USD remains under heavy bearish pressure and falls toward 1.3500 on Tuesday. The UK employment data highlighted worsening labor market conditions, bolstering bets for a BoE interest rate cut next month and making it difficult for Pound Sterling to stay resilient against its peers.

Gold recovers modestly, stays deep in red below $4,950

Gold (XAU/USD) stages a rebound but remains deep in negative territory below $4,950 after touching its weakest level in over a week near $4,850 earlier in the day. Renewed US Dollar strength makes it difficult for XAU/USD to gather recovery momentum despite the risk-averse market atmosphere.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.