USD/CHF Price Analysis: Rising wedge teases bears, 0.9985 is the key
24.10.2022, 22:47

USD/CHF Price Analysis: Rising wedge teases bears, 0.9985 is the key

  • USD/CHF remains pressured inside a bearish chart pattern.
  • Sustained trading below 50-HMA, downside break of weekly support line also favor sellers.
  • Buyers need validation from 1.0075 to refresh multi-month high.

USD/CHF holds lower grounds near the parity levels, fading the week-start bounce off 0.9944 inside a rising wedge bearish formation during Tuesday’s Asian session.

In doing so, the Swiss currency pair also extends the previous day’s pullback from the 50-HMA hurdle while keeping Friday’s downside break of a one-week-old ascending support line, now resistance around 1.0085.

Additionally favoring the USD/CHF sellers is the receding bullish bias of the MACD line, as well as the recent lower-high formation.

It should, however, be noted that a clear downside break of the 0.9985 support appears necessary to confirm the rising wedge pattern.

Following that, the recent swing low of around 0.9945 and the previous weekly bottom near 0.9920 could test the USD/CHF bears during the theoretical fall towards 0.9890.

Alternatively, the 50-HMA level surrounding 1.0025 acts as an immediate hurdle to watch during the pair’s fresh recovery, a break of which should question the bearish wedge’s resistance line, close to 1.0040 at the latest.

In a case where USD/CHF rises past 1.0040, the bearish formation gets defied.

However, a broad horizontal area comprising multiple levels marked since October 13, between 1.0066 and 1.0075 will precede the support-turned-resistance line, near 1.0085, to challenge the USD/CHF bulls afterward.

USD/CHF: Hourly chart

Trend: Further weakness expected

 

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