Technical Analysis – USDCHF ranges between 23.6% and 76.4% Fibonacci levels

USDCHF is struggling to dip beneath the 100-day simple moving average (SMA) at 0.9155 following the recent evaporation of upside momentum. That said, the pair is somewhat presently stuck between the stabilized upper and lower frontiers of the Bollinger bands at 0.9259 and 0.9114 respectively. The SMAs at this point in time are not really signalling a definitive price direction.

The short-term oscillators are suggesting a slight increase in negative momentum. The MACD, in the positive area, is holding below its red trigger line, while the RSI is tiptoeing across the 50 level, looking inclined to dip beneath it. That said the negatively charged stochastic oscillator is promoting downside price action.

If sellers drive the price below the 100-day SMA at 0.9155, preliminary tough support could develop at the lower Bollinger band at 0.9114, which happens to also be the 50.0% Fibonacci retracement of the up leg from 0.8757 to 0.9472. Hovering beneath this level is a support band formed between the 50- and the 200-day SMAs at 0.9092 and 0.9071 respectively. If sellers decisively take the lead, the 61.8% Fibo of 0.9030 could be challenged before the hardened floor from the 0.8965 low until the 76.4% Fibo of 0.8924 comes into play.

Otherwise, if the pair oversteps the mid-Bollinger band at 0.9190, buyers may encounter a durable resistance section of 0.9230-0.9274. Climbing above the upper Bollinger band, the 23.6% Fibo at 0.9302 could impede the price from jumping to test the 0.9369 and 0.9400 barriers. From here, only a thrust above the long-term restrictive line, pulled from the 1.0235 peak, and beyond the resistance region of 0.9438-0.9472 could strengthen the bullish outlook.

Summarizing, USDCHF is sustaining a neutral demeanour squeezed between the Bollinger bands. An initial break either above the upper or lower Bollinger band at 0.9259 or 0.9114 respectively could boost a price direction in the near-term.

Latest News

Technical Analysis – Facebook stock recedes from all-time high of 375

Technical Analysis – WTI futures struggle to surpass 200-period SMA

Technical Analysis – GBPUSD waits for a channel breakout

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.