Technical Analysis – USDCHF shows negative signs in the short-term

USDCHF had a bearish start on Thursday, with the price breaking a crucial level below the 20- and 40-day simple moving averages (SMAs). The pair has also increased its distance below its negatively sloped 200-SMA and the Ichimoku cloud, indicating that the recent downtrend might hold for longer.

The momentum signals are bearish as well as the red Tenkan-sen line, which is below the blue kijun-sen line, looks to be heading south, while the RSI has reversed lower after failing to break above its 50 neutral mark last week. However, the stochastic oscillator is heading north creating a bullish cross within the %K and %D lines.

Should the price extend its declines, the 0.9090 level could be a turning point for the bearish move. Below that, the focus would shift straight to 0.9020 where the price posted a strong rebound on August 2021.

On the other hand, a recovery could retest the 0.9180 barrier, which overlaps with the upper boundary of the Ichimoku cloud before attention turns to the 200-day SMA at 0.9190. Moving higher, the 0.9275-0.9294 area may halt the bullish actions.

Turning to the medium-term picture, the neutral-to-bearish outlook remains in play, while a drop below 0.9090 could endorse a negative outlook. A jump above the 200-day SMA may add some optimism for bullish movements.

Overall, USDCHF holds a bearish profile both in the short and the medium-term.

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