USD/CHF looking bearish in the short and medium-term.

USD/CHF lost 4.8% after reaching its highest since May 2017 of 1.0067 around mid-July. It is currently trading not far above a five-and-a-half-month low of 0.9541 tracked on Friday.

The Tenkan- and Kijun-sen lines are negatively aligned in support of a bearish short-term bias for the pair.

Should USD/CHF extend lower, support may come around the 61.8% Fibonacci retracement level of the up-leg from 0.9187 to 1.0067 at 0.9523; last week’s five-and-a-half-month nadir of 0.9541 is also part of the area around this point. Lower still, the 76.4% Fibonacci mark at 0.9395 would increasingly come into scope.

On the upside, resistance could occur around the 50% Fibonacci level at 0.9627; the Tenkan-sen lies not far above at 0.9645. Further above, the focus would turn to the 38.2% Fibonacci point at 0.9730.

The medium-term picture is looking bearish, with price action taking place below the 50- and 100-day (simple) moving average lines, as well as below the Ichimoku cloud. Overall, trading activity is confirming the negative medium-term signal given by the bearish cross recorded in early September when the 50-day MA moved below the 100-day one.

To sum up, both the short- and medium-term outlooks are looking predominantly negative at the moment.

USD/CHF 24/09/2018 | EconAlerts




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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

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