- USD/CHF bounces and trades at 0.8941, showing consolidation around the 0.8900 level.
- The pair needs to break above 0.8949 (61.8% Fibonacci retracement) to reach 0.9000.
- A drop below 0.8900 could expose the year to date low at 0.8819.
USD/CHF bounces around weekly lows, though remains below 0.9000, as risk aversion momentum bolstered the US dollar (USD), which will end the week down 1.18%, according to the Index of the US dollar (DXY). The USD/CHF pair is trading at 0.8941 after hitting a daily low of 0.8901.
USD/CHF Price Analysis: Technical Insights
The USD/CHF pair shows a bearish bias, although it consolidates near the 0.8900 area. During the session, USD/CHF fell from around the 61.8% Fibonacci retracement (FR) level towards the 78.6% FR level, but failed to break above 0.8900, which would have compounded further losses and a test of the 0.8819 lows. .
With USD/CHF rebounding towards the 61.8% FR at 0.8949, buyers must conquer the latter to push rates towards the psychological 0.9000 level. In that case, the next USD/CHF resistance would be the 50% FR at 0.8983, followed by 0.9000.
Conversely, the path of least resistance, according to oscillators such as the Relative Strength Index (RSI) and the Rate of Exchange (RoC), if USD/CHF falls below 0.8900 and below the 78.6% FR, would expose the low for the year at 0.8819.
USD/CHF Price Action – 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.
