USDCHF Technical Analysis: Facing Near-Term Resistance
USDCHF – Price, Chart and Technical Analysis
- Heavy sell-off stalls for now.
- Fibonacci retracement and 200-day moving average may prove a difficult hurdle.
The latest IG Client Sentiment Indicator shows retail are currently 66.3% net long the pair, and combined with retail being further net-long long than yesterday and last week gives us a stronger-bearish contrarian indicator.
Swiss Franc Remains Bid on EM Woes, Trade Concerns
USDCHF currently trades either side of 0.9700, near its recent four-and-a-half month low, as the Swiss France retains its safe-haven bid, as EM currencies slump and trade tensions ratchet up. The sharp fall seen in the second-half of August has stopped for now with the pair trying to push back. On the daily chart USDCHF may encounter resistance around 0.97300 where the 38.2% Fibonacci retracement level meets the 200-day moving average. This level may prove difficult to overcome in the current risk-off environment and the pair may look at the 50% retracement of the February-July rally at 0.96279 as the next level of support.
The RSI indicator remains in oversold territory and may provide short-term support, although the IG Client Sentiment indicator is currently flashing a bearing signal for the pair. Today’s turnover is thinned by a US Bank Holiday and traders should wait until the US fully returns to the fray on Tuesday to see if chart resistance remains.
USDCHFDaily Price Chart (October 2017 – September 3, 2018)
What’s your opinion on USDCH and the latest EM sell-off?. Share your thoughts with us using the comments section at the end of the article or you can contact the author via email at Nicholas.email@example.com or via Twitter @nickcawley1
--- Written by Nick Cawley, Analyst
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.