- USD/CHF is under pressure in Asia as US index futures are flashing red.
- The pair has created a bear flag or a bearish continuation pattern on the 4-hour chart.
| USD/CHF is currently trading at 0.9364, representing a 0.38% drop on the day, having failed to chew through offers around 0.94 during the overnight trade.
The anti-risk CHF is drawing bids in Asia, possibly tracking the S&P 500 futures, which are currently signaling risk aversion with a 2.25% drop. From a technical perspective, the pair’s bounce from Monday’s low of 0.9182 to 0.94 has taken the shape of a bear flag, a bearish continuation setup, on the 4-hour chart. A break below 0.93 (lower end of the flag) would confirm an end of the recovery rally and revival of the bearish trend from recent highs above 0.98 and could yield re-test of Monday’slow of 0.9182. However, a flag breakdown will likely remain elusive, if the spot finds acceptance above 0.94.That could be seen if the global equities extend Tuesday’s recovery rally, which was reportedly fueled by expectations for fresh US fiscal stimulus. |
USD/ CHF, Daily Chart(see more posts on USD/CHF, )-637194909152513960.png) - Click to enlarge |
Trend: Bearish
Technical levels
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