- Continued with its struggle to extend the momentum beyond 200-DMA.
- Bears eye a decisive break below the ascending trend-channel support.
- Bulls are likely to await a sustained strength above the key parity mark.
| The USD/CHF pair failed to capitalize on last week’s attempted rebound from a support marked by the lower end of a two-month-old ascending trend-channel and met with some fresh supply on Monday.
The pair’s repeated failed attempts to extend the momentum further beyond the very important 200-day SMA now seemed to suggest that the recent positive move might have already run out of the steam. Meanwhile, oscillators on hourly charts have struggled to gain any meaningful traction but managed to hold with a mild positive bias, warranting some caution before placing any aggressive bearish bets. Hence, it will be prudent to wait for a sustained break below the mentioned trend-channel support, currently near the 0.9925 region, before positioning for a slide back towards the 0.9900 handle. Sustained weakness below the mentioned support will reaffirm a near-term bearish breakdown and accelerate the slide further towards the next major support near the 0.9860-55 region. On the upside, bulls are likely to wait for a decisive breakthrough the parity mark, above which the pair is likely to aim towards testing the recent swing highs resistance near the 1.0025-30 region. The momentum could further get extended, though is likely to confront stiff resistance near the top end of the mentioned trend-channel, currently near the 1.0100 round-figure mark. |
USD/CHF daily chart, July-November 2019(see more posts on USD/CHF, )-637066508442585331.png) - Click to enlarge |
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