USD/CHF Technical Analysis
- US Dollar against Swiss Franc charts and analysis
USD/CHF - Price Action
On Dec 13, USD/CHF declined 0.9805- to its lowest level in over three months. The price rallied after as sellers took profit. This week, sellers resumed bearish price action and pressed below 0.9800 handle for the first time three and half months.
Alongside this, the Relative Strength Index (RSI) fell from 40 to 32 emphasizing the strength of downtrend momentum.
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USD/CHF Daily Price Chart (Nov 1, 2017 – DEC 20, 2019) Zoomed Out
USD/CHF Daily Price Chart (June 25– DEC 20, 2019) Zoomed IN
From the daily chart, we notice on Dec 10 USD/CHF tumbled to a lower trading zone 0.9758- 0.9852. The price failed to rally to the higher trading zone in multiple occasions highlighting that sellers were in charge.
The price broke below the neckline of double top pattern located at 0.9840 generating another bearish signal. A close below the low end of the zone, could persuade more sellers to join the market and press USDCHF towards 0.9639. In that scenario, the weekly support levels underlined on the chart (zoomed in) should be watched closely, as some sellers might take profit at these points.
On the other hand, any failure in closing below the low end reflects seller’s hesitation. This could lead some of them to exit the market causing a price reversal towards the high end of the zone. Further close above the high end, opens the door for buyers to take control and lead USDCHF towards 0.9930. That said, the weekly resistance levels underscored on the chart would be worth monitoring.
USD/CHF Daily Four-Hour Chart (Oct 10, 2017 – DEC 20, 2019)
Looking at the four-hour chart, we notice on Nov 29 USD/CHF peaked at 1.0023 then started a downtrend move creating a series of lower highs with lower lows.
A break below 0.9754 could send USDCHF towards 0.9685. Yet, the weekly support levels underscored on the chart should be considered. On the other hand, a break above 0.9821 may lead the price to correct higher towards the high end of the trading zone discussed above on the daily chart. Although, the resistance area marked on the chart should be kept in focus.
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Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
