USD/CHF Price Analysis: Looses steam and dives below 0.9200 as bearish engulfing pattern looms
28.09.2023, 18:58

USD/CHF Price Analysis: Looses steam and dives below 0.9200 as bearish engulfing pattern looms

  • USD/CHF retreats to around 0.9150 after reaching a new cycle high at 0.9225.
  • To resume the uptrend, the pair must rally past 0.9225, allowing buyers to challenge the year-to-date highs at 0.9440.
  • If USD/CHF fails to reclaim 0.9200, a drop towards 0.9100 is likely, with the 200-hour moving average eyed at 0.9071.

USD/CHF reverses its direction after rallying for 16 straight days, though the pair loses steam as technical indicators signal the major is overbought. Hence, the USD/CHF is trading at around 0.9150s, down 0.57%.

The uptrend remains intact, as shown by the daily chart, as the USD/CHF reached a new cycle high at 0.9225 and broke above the 200-day moving average (DMA) at 0.9029. However, to resume its uptrend, the major must rally past the former, so buyers can challenge the year-to-date (YTD) highs at 0.9440. A breach of the latter can open the door for parity.

In short, the USD/CHF hourly chart portrays the break of market structure on the downside. After hitting a multi-month high, the major retraced below 0.9200, extending its losses past the 50-hour moving average (HMA) at 0.9182. That exacerbated a fall below the 61.8% Fibonacci retracement, though lately buyers stepped in, and lifted the spot price above 0.9159. If the USD/CHF reclaims 0.9200, a test of September’s high at 0.9225 is on the cards. Otherwise, expect a drop towards 0.9100, followed by the 200-HMA at 0.9071.

USD/CHF Price Action – Hourly chart

USD/CHF Key Technical Levels

 

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