- A weaker US dollar is weighing on USD/CHF, down almost 1%.
- A bearish candlestick pattern exacerbated a 200 point drop in USD/CHF.
- In the short term, USD/CHF has a bearish bias and could test 0.9300.
The USD/CHF It falls sharply, extending its losses to two straight days, after hitting a fresh two-week high at 0.9600, near the 200-day EMA at 0.9628. The failure to make up the first one exacerbated a 200 point drop. Therefore, USD/CHF is trading at 0.9430, losing almost 1%.
USD/CHF Price Analysis: Technical Perspective
The USD/CHF daily chart shows the formation of a bearish candlestick chart pattern that was formed by the USD/CHF price action on Monday and Tuesday. On Wednesday, the main pair continued its path lower, after hitting a daily high of 0.9533, right at the 23.6% Fibonacci retracement, defended by sellers, as shown by a 100-pip drop in USD/CHF. Although the Relative Strength Index (RSI) continued on its way, it turned flat in bearish territory, opening the door for consolidation.
In the short term, USD/CHF collided with the 50 period EMA around 0.9488, and a downtrend line was drawn from early November. Therefore, buyers of the US dollar (USD) that were unable to break above 0.9500 exposed the pair to selling pressure.
Therefore, the first support for USD/CHF will be the 0.9400 level, followed by the November 15 low at 0.9356. A decisive break will expose the 0.9300 figure. To the upside, the key USD/CHF resistance level lies at 0.9500, which, once broken, could open the door to 0.9600 and beyond.
Key USD/CHF Technical Levels
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.
