USD/CHF Price Analysis: Eyes further downside below 0.9500
22.11.2022, 23:48

USD/CHF Price Analysis: Eyes further downside below 0.9500

  • USD/CHF stays depressed after snapping six-day uptrend the previous day.
  • Clear break of one-week-old bearish channel, downbeat MACD signals favor sellers.
  • 50-SMA, previous resistance line from November 03 challenge immediate downside.

 

USD/CHF holds lower ground near 0.9515 following the first daily negative in seven.

The Swiss Franc (CHF) pair broke a one-week-old bullish channel the previous day and welcomed the bears. While adding strength to the downside bias are the recently bearish signals from the Moving Average Convergence and Divergence (MACD) indicator.

However, the 50-SMA level surrounding 0.9495 precedes the resistance-turned-support line from November 03, close to 0.9430 by the press time, to challenge the USD/CHF pair’s immediate declines.

Following that, the 0.9400 round figure and the monthly low surrounding 0.9355 should gain the market’s attention.

On the flip side, the aforementioned channel’s support line acts as an immediate resistance around 0.9530, a break of which could escalate the corrective bounce towards the channel’s top, near 0.9630.

Should the USD/CHF bulls manage to keep the reins, the November 11 swing high surrounding the 0.9900 threshold will be important to watch for the pair’s further upside momentum. If the pair remains firmer past 0.9900, the odds of its run-up towards the monthly high near 1.0150 can’t be ruled out.

Overall, USD/CHF is likely to refresh the monthly low unless rising back beyond the 0.9900 mark.

USD/CHF: Four-hour chart

Trend: Further downside expected

 

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