- USD / CHF hovers around the intraday low after retracing from key short-term resistance earlier in the Asian session.
- The five-week horizontal support draws bears, while the confluence of the 50-day SMA and the downtrend line since November is the key resistance.
USD / CHF is moving around 0.8850 ahead of Monday’s European session. The pair bounced off a two-week low on Friday before falling back from 0.8866. Failure to break above the 21-day SMA is weighing on the pair so far on Monday.
As a result, sellers of USD / CHF are hoping to carry the pair below 0.8800 in a further decline. However, multiple supports around 0.8825 can offer intermediate support.
It is worth mentioning that a drop in the pair below 0.8800 will point to the monthly low near 0.8755.
On the other hand, an upside breakout of the 21-day SMA, now at 0.8858, will steer USD / CHF buyers towards the round level of 0.8900 in the near term.
Although any further rally will be limited by a convergence of the 50-day SMA and a downtrend line from November 11, close to 0.8920.
USD / CHF daily chart
USD / CHF technical levels
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