USD/CHF Price Analysis: Fades bounce off previous resistance above 0.9400
05.12.2022, 23:40

USD/CHF Price Analysis: Fades bounce off previous resistance above 0.9400

  • USD/CHF probes two-day rebound with mild losses, struggles of late.
  • Resistance-turned-support line challenges bears even as 200-HMA restricts immediate upside.
  • Bullish MACD signals, sustained break of 50-HMA adding strength to upside bias.

USD/CHF snaps a two-day rebound from the eight-month low as it prints mild losses near 0.9425 during Tuesday’s Asian session.

Even so, the Swiss Franc (CHF) pair defends the previous day’s upside break of a downward-sloping resistance line from December 01, now support. Also keeping the USD/CHF pair buyers hopeful is the quote’s successful trading above the 50-HMA and bullish MACD signals.

That said, the quote’s recovery moves need validation from the 200-HMA hurdle surrounding 0.9440, to keep the USD/CHF buyers hopeful.

Following that, the 50% and the 61.8% Fibonacci retracement levels of the pair’s November 21 to December 02 downside, close to 0.9465 and 0.9495, as well as the 0.9500 threshold, could challenge the USD/CHF bulls.

In a case where the pair remains firmer past 0.9500, multiple hurdles around 0.9500 can test the pair’s further upside.

Alternatively, pullback moves need to break the resistance-turned-support line, close to 0.9410, to tease the USD/CHF bears.

However, the 50-HMA level of 0.9375 and the latest trough surrounding 0.9325, also the lowest levels since April, could challenge the pair’s additional weakness before directing sellers toward the 0.9300 round figure.

USD/CHF: Hourly chart

Trend: Further upside expected

 

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