- USD/CHF is preparing to resume its bearish bias, confirmed by oscillators and sellers intervening around 0.9000.
- If USD/CHF sellers recapture 0.8900, expect a test of the year-ago low at 0.8859.
- Upside risks lie above 0.9000, with buyers keeping an eye on the 20-day EMA.
He USD/CHF reversed course after hitting a weekly high at 0.9003 and fell as sellers remain hell-bent on defending 0.9000. After consolidating for consecutive days in the 0.8950-0.9000 range, USD/CHF is trading at 0.8933, shedding 0.45% on the day.
USD/CHF Price Action
USD/CHF posted two positive days and held its own through the week before turning negative. The sellers are picking up momentum, as shown by the RSI, which is still in bearish territory. Furthermore, the exchange rate (Rate) also turned bearish, suggesting that the USD/CHF pair may resume its downtrend.
If USD/CHF continues to decline, next support would be the April 14 daily low at 0.8866. Once broken, the next break would be the daily low at 0.8859, followed by 0.8800.
On the other hand, the first resistance for USD/CHF would be the confluence of a month-old downtrend line around 0.8990, followed by the 0.9000 figure. A break of the latter, USD/CHF can rally towards the 20-day EMA at 0.9044 before targeting the April 10 daily high at 0.9120.
USD/CHF Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
