USD/CHF Price Analysis: Fades bounce off seven-month-old support above 0.9100
14.08.2022, 23:53

USD/CHF Price Analysis: Fades bounce off seven-month-old support above 0.9100

  • USD/CHF remains below 200-DMA despite bouncing off multi-day-old support line.
  • Bearish MACD signals, failure to cross the key DMA favor sellers.
  • Bulls need validation from 61.8% Fibonacci retracement level.

USD/CHF remains sidelined around 0.9415, struggling between the 200-DMA and the key support line, as bears take a breather during Monday’s Asian session.

Even so, the Swiss currency (CHF) pair’s failure to cross the 200-DMA, despite bouncing off an upward sloping support line from January 13, teases sellers as the MACD flashes bearish signals.

It’s worth noting, however, that the RSI (14) is nearly oversold and hence the quote’s immediate downside appears limited, which in turn highlights the aforementioned support line around 0.9370.

In a case where the USD/CHF bears manage to conquer the 0.9370 support, a downward trajectory towards January’s top near 0.9345 appears imminent before highlighting March’s low of 0.9195.

On the contrary, a daily closing beyond the 200-DMA resistance level surrounding 0.9435 isn’t an open invitation to the USD/CHF bulls as the 61.8% Fibonacci retracement level of January-May upside, close to 0.9465, offers an extra hurdle to the north.

Even if the quote rises past 0.9465, successful trading beyond June’s low of 0.9495, as well as the 0.9500 threshold, appears important for the USD/CHF bulls to retake control.

USD/CHF: Daily chart

Trend: Further weakness expected

 

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