Technical Analysis – USDCHF looks incapable of overstepping key resistance

USDCHF is currently tackling a durable resistance barrier around the 0.9030 mark, which is reinforced by the overlapping downtrend line, pulled from the 0.9472 high, the blue Kijun-sen line and the 50-period simple moving average (SMA). The former happens to be the 61.8% Fibonacci retracement of the up leg from 0.8757 until the nine-month peak of 0.9472. The bearish SMAs are shielding the downtrend, while the flattened Ichimoku lines are suggesting negative momentum may soon resume.

The short-term oscillators are signalling that current positive sentiment is feeble. The MACD is slowly improving in negative territory above its red trigger line. That said the RSI is struggling to step over the 50 level, while the stochastic %K line is stalling ahead of the 80 overbought threshiold.

If the multiple resistance obstacles around 0.9030 fail to discourage buyers, the price may catapult towards the 100-period SMA in the vicinity of the Ichimoku cloud’s upper band at 0.9074. Overcoming this, buyers may then challenge the 0.9093 and 0.9118 borders respectively, as the price aims for the 200-period SMA at 0.9150.

Should the falling trend line direct the price back down, initial friction could be met at the red Tenkan-sen line at 0.8993, before sellers face the support section of 0.8948-0.8967. Successfully slipping past this, the pair may rest at the 76.4% Fibo of 0.8926. Next, should negative pressures intensify, the price may sink towards the 0.8870 support level.

In conclusion, USDCHF is maintaining a sturdy bearish demeanour below the SMAs and the Ichimoku cloud.

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