Tuesday, January 21, 2020
Home > Posts > Technical Analysis – USD/CHF hits low

Technical Analysis – USD/CHF hits low

USD/CHF 31/05/18 | EconAlerts


USD/CHF hits one-month low; medium-term outlook still positive.

USD/CHF has lost 2% of its value after reaching a one-year high of 1.0056 in early May. Earlier on Thursday, the pair touched a one-month low of 0.9847.

The RSI continues to fall, having crossed below the 50 neutral-perceived level. This is indicative of the bearish short-term bias that is in place.

The region around the 23.6% Fibonacci retracement level of the February 16 to May 7 up-leg at 0.9850 seems to be providing immediate support; this mark was violated earlier in the day, but the price subsequently moved back above it. Steeper losses might meet additional support around the current level of the 50-day moving average at 0.9794 – including the 0.98 round figure – and the 38.2% Fibonacci mark at 0.9723.

On the upside, resistance may come around the 0.99 handle which may be of psychological importance. The 1.00-parity level would be eyed next in case of stronger bullish movement, with May 7’s one-year high of 1.0056 lying not far above.

In terms of the medium-term outlook, it continues to look mostly positive with price action still taking place above both the 50- and 100-day MA lines – a bullish (golden) cross was also recorded in early May when the 50-day MA moved above the 100-day one. However, the declines from recent weeks have brought the price not far above the 100-day MA. A drop below this level would set a more neutral picture in the medium-term.

Overall, the short-term outlook is looking bearish and the medium-term outlook appears predominantly bullish.

USD/CHF 31/05/18 | EconAlerts

 

TRADE THE MARKETS     TRY A DEMO ACCOUNT     US TRADERS

All trading involves risk. It is possible to lose all your capital

 


Disclaimer:
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.


source: XM

Leave a Reply

Your email address will not be published. Required fields are marked *