USD/CHF sellers approach 0.9225 support with eyes on US PMIs


  • USD/CHF takes offers to reverse previous day’s bounce off 8.5-month low.
  • Markets stabilize after global central banks portrayed a volatile day, allowing sellers to sneak in.
  • Failure to cross support-turned-resistance directs bears towards three-week-old trend line support.
  • Preliminary PMIs for December, risk catalysts will be important for fresh impulse.

USD/CHF stays pressured around the intraday low near 0.9270 as it reverses the previous day’s rebound from a multi-day bottom during Friday’s sluggish Asian session.

The Swiss Franc (CHF) pair’s previous recovery could be linked to the market’s rush for the US Dollar in search for safety as major central banks, including the Swiss National Bank (SNB), announced rate hikes. Not only that, the policymakers’ readiness to keep the rate higher for longer also favored the US Dollar’s safe-haven demand.

Additionally, US President Joe Biden’s crackdown on Chinese IT companies added strength to the risk-off mood and propelled the USD/CHF prices.

That said, a lack of major data/events during the early Asian session joins the market’s consolidation after a big day to resume the USD/CHF pair’s downside. Additionally, the favoring the pair sellers is the technical pattern that could term Thursday’s recovery as a corrective bounce which could not clear important resistance.

Moving on, the first readings of December month activity numbers will be important for the USD/CHF pair traders for clear directions.

Technical analysis

A clear downside break of the monthly support line, followed by failure to cross the same during a corrective bounce, keeps the USD/CHF bears hopeful amid steady RSI (14) conditions.

That said, a downward-sloping support line from November 24, close to 0.9225, could restrict the short-term downside of the Swiss Franc (CHF) pair. Following that, a late March low near 0.9195 will be in focus.

Alternatively, recovery moves need to cross the support-turned-resistance, around 0.9300 by the press time, to retake control. Even so, the 50-SMA and the 100-SMA can challenge the buyers around 0.9345 and 0.9390 in that order.

USD/CHF: Four-hour chart

Trend: Limited downside expected    

Additional important levels

Overview
Today last price 0.9272
Today Daily Change -0.0015
Today Daily Change % -0.16%
Today daily open 0.9287
 
Trends
Daily SMA20 0.9417
Daily SMA50 0.9691
Daily SMA100 0.968
Daily SMA200 0.9647
 
Levels
Previous Daily High 0.9317
Previous Daily Low 0.9228
Previous Weekly High 0.9456
Previous Weekly Low 0.9312
Previous Monthly High 1.0148
Previous Monthly Low 0.9357
Daily Fibonacci 38.2% 0.9283
Daily Fibonacci 61.8% 0.9262
Daily Pivot Point S1 0.9238
Daily Pivot Point S2 0.9188
Daily Pivot Point S3 0.9148
Daily Pivot Point R1 0.9327
Daily Pivot Point R2 0.9367
Daily Pivot Point R3 0.9417

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD holds near 1.0850 ahead of key inflation data

EUR/USD holds near 1.0850 ahead of key inflation data

EUR/USD struggles to build on Wednesday's gains and trades in a tight channel at around 1.0850 in the European session on Wednesday. Market participants await key inflation data releases from the Euro area and the US. 

EUR/USD News
USD/JPY falls below 152.50 after BoJ event

USD/JPY falls below 152.50 after BoJ event

USD/JPY stays under bearish pressure and falls toward 152.00 on Wednesday. The Bank of Japan (BoJ) left its policy setting unchanged but Governor Ueda noted that the impact of foreign exchange rate on prices had become larger than in the past.

USD/JPY News
Gold holds near $2,780, looks to US PCE Price Index for fresh impetus

Gold holds near $2,780, looks to US PCE Price Index for fresh impetus

Gold stays in a consolidation phase after setting a new record-high of $2,790. US political jitters and Middle East tensions might continue to act as a tailwind for the XAU/USD. Traders keenly await the release of the US PCE Price Index before placing fresh directional bets.

Gold News
Uniswap Price Forecast: Technical outlook suggests a bullish breakout ahead

Uniswap Price Forecast: Technical outlook suggests a bullish breakout ahead

Uniswap is trading slightly below $8 on Thursday after rejecting a key resistance level on Wednesday. A successful close above this threshold could indicate a rally for the decentralized exchange, bolstered by technical indicators showing a bullish crossover pointing to potential upward momentum.

Read more
German economy surprises in the third quarter

German economy surprises in the third quarter

The German economy avoided a technical recession in the third quarter, showing unexpected growth. However, this does not change the fact that the economy remains stuck in stagnation.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures