- USD/CHF’s downtrend remains intact, with a path of least resistance to the downside as long as it remains below the 61.8% Fibonacci retracement level at 0.8819.
- Sellers could extend their momentum and test the year-to-date low at 0.8554 if the pair crosses the 0.6600 signal.
- From an oscillator point of view, the relative strength index (RSI) pointing to the downside and the influence of sellers suggested by the three-day rate of change (RoC) align with the downtrend.
USD/CHF pulls back after hitting a daily high of 0.8700 and falls to a fresh two-day low amid a risk-on environment ahead of the US Federal Reserve’s (Fed) monetary policy decision. As of this writing, USD/CHF is trading at 0.8640, down 0.59%.
USD/CHF Price Analysis: Technical Perspective
The USD/CHF downtrend remains intact as long as the exchange rate remains below the May 4 daily low of 0.8819, confluence with the 61.8% Fibonacci retracement (Fibo). Once that level is broken, the next resistance will emerge at the next confluence of the 50 day EMA and the 78.6% Fibonacci level at the 0.8875/0.8900 area, followed by 0.9000.
However, the path of least resistance for USD/CHF is to the downside, as it resumed its slide to a fresh two-day low, passing the 23.6% Fibonacci retracement at 0.8659. Next support lies at 0.8600 and if sellers gain momentum it could extend and test the year to date low at 0.8554.
From an oscillator point of view, the Relative Strength Index (RSI) pointed lower as the USD/CHF downtrend resumed, while the 3-Day Rate (RoC) portrays the entry of sellers into the market.
USD/CHF Price Action – Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
