Previous post Next post

USD/CHF technical analysis: Upside capped by 4-week old resistance-line


  • USD/CHF remains below near-term resistance-line forming part of immediate rising wedge bearish formation.
  • 200-bar SMA, 50% Fibonacci retracement can question pair’s downside below 0.9857/54 confluence.

USD/CHF fails to extend the latest upward trajectory as it trades near 0.9900 during Asian session on Monday.

While drawing trend-lines with the help of highs and lows marked since August 23, a short-term rising wedge, bearish formation, appears on the four-hour chart. However, the resistance-line can be stretched since early-August levels for further precision.

As a result, 0.9922 acts as a tough upside barrier amid overbought conditions of 14-bar relative strength index (RSI), a break of which can escalate the pair’s rise to July 26 high of 0.9948 ahead of flashing August month top of 0.9968 on buyers’ radar.

During the pair’s pullback, 61.8% Fibonacci retracement of August month downpour and the formation’s lower-line becomes the key support around 0.9857/54, a break of which can drag the quote to 200-bar simple moving average (SMA) and 50% Fibonacci retracement near 0.9818/17.

In a case, prices keep trading southwards past-0.9817, August 25 low near 0.9717 could be bears’ favorite.

USD/CHF Four Hours Chart, July - August 2019

(see more posts on USD/CHF, )
USD/CHF Four Hours Chart, July - August 2019

- Click to enlarge

Trend: pullback expected


Full story here
Anil Panchal
Anil Panchal, has seven years of experience as a commodity research analyst and six years' rich knowledge of Forex markets. He holds a masters degree in Business Administration with Finance being specialization.
Previous post See more for 1.) FXStreet on SNB&CHF Next post
Tags: ,

Permanent link to this article:

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

This site uses Akismet to reduce spam. Learn how your comment data is processed.