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USD/CHF Technical Analysis: The ongoing corrective slide challenges 200-hour SMA support, around mid-0.9800s

 

  • Extends overnight retracement slide from an ascending trend-channel resistance.
  • A follow-through selling has the potential to drag the pair towards channel support.

The USD/CHF pair remained under some selling pressure for the second consecutive session on Wednesday and retreated farther from over one-month tops set in the previous session.

The pair on Tuesday started retreating from a resistance marked by the top end of a short-term ascending trend-channel, extending from multi-month lows touched on August 13th.

The pullback, however, seems to have found some support near 200-hour SMA, which should now act as a key pivotal point and help traders to position for the pair’s intraday movement.

USD/CHF 1-hourly chart

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USD/CHF 1-hourly chart

- Click to enlarge

Meanwhile, technical indicators on hourly charts have been gaining negative traction and losing positive momentum on the daily chart, supporting prospects for an extension of the corrective slide.

A sustained break below the mentioned support – currently near the 0.9845 region – will reaffirm the intraday bearish bias and set the stage for a slide back towards challenging the 0.9800 handle.

The downfall could further get extended towards the lower end of the mentioned trend-channel, around the 0.9775-70 region, which if broken will pave the way for further depreciating move.

On the flip side, immediate resistance is now pegged near the 0.9860-65 region, above which the pair is likely to aim towards reclaiming the 0.9900 handle en-route the channel resistance near 0.9935 area.

 

Full story here
Haresh Menghani
Haresh Menghani, Financial Markets Analyst and New Editor, joined FXStreet team after accumulating 8 year of rich experience in analysing global financial markets. Haresh holds Masters degree in Business Administration and Financial Analysis.
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