USD/CHF Price Analysis: Drops back towards 0.9340 support confluence
18.03.2022, 06:00

USD/CHF Price Analysis: Drops back towards 0.9340 support confluence

  • USD/CHF fades bounce off intraday low, stays down for the third consecutive day.
  • Seven-week-old horizontal area joins 50-SMA to highlight 0.9340 as the key support.
  • Fresh recovery will eye 2021 top, key Fibonacci retracements to add to the downside filters.
  • Bearish MACD signals, trend line break keep sellers hopeful.

USD/CHF remains on the back foot around intraday bottom, down 0.08% on a day around 0.9360 heading into Friday’s European session.

In doing so, the Swiss currency (CHF) pair portrays a failure to keep the bounce off a short-term crucial support convergence, comprising tops marked during late January and 50-SMA.

Also favoring USD/CHF sellers is the downside break of the previous support line from March 06, as well as the bearish MACD signals.

That said, the latest declines eye 0.9340 re-test before directing the bears towards the 50% Fibonacci retracement (Fibo.) of February 21 to March 16 upside, near 0.9305.

Following that, the 61.8% Fibo level near 0.9270 may entertain the USD/CHF bears before directing them to the 0.9200 threshold.

Meanwhile, recovery moves remain elusive below the support-turned-resistance line, close to the 0.9400 round figure by the press time.

Following that, the monthly high and tops marked during the year 2021, respectively around 0.9460 and 0.9475 in that order, will lure the USD/CHF bulls.

USD/CHF: Four-hour chart

Trend: Further weakness expected

 

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