XM does not provide services to residents of the United States of America.

Technical Analysis – USDCHF trims gains within bullish channel



USDCHF drifted down to 0.9017 after facing resistance around the familiar long-term constraining zone of 0.9070.

The negative slope in the RSI and the Stochastic oscillator on the four-hour chart suggests market sentiment may remain downbeat in the coming sessions. The MACD has slipped back below its red signal line, increasing the likelihood of another leg down too.

Still, with the pair trading within a bullish channel and having marked new higher highs above the 0.9000 level recently, which looks to be the neckline of an inverse head and shoulders pattern, the current downside move could be a corrective part of the upward pattern.

The 50-period simple moving averages (SMAs) could provide some footing at 0.9000 ahead of the channel’s lower boundary seen near 0.8980. Should the bears breach the latter point, the pair may have another opportunity for a rebound somewhere between the broken descending trendline from November 2022 at 0.8950 and the 200-period SMA. If the sell-off continues, the next floor could be around 0.8920 or lower at 0.8895.

On the upside, buyers will wait for an extension above 0.9070 before they target the channel’s upper band at 0.9120. Note that the price peaked around the same location on April 10th. Hence, a continuation higher could motivate fresh buying towards the 0.9180-0.9200 region. We will closely watch the key descending line from June 2022 as well at 0.9230.

Summing up, the ongoing bearish action in USDCHF could gain new legs in the short-term. That said, traders may not get upset unless the sell-off extends below the bullish channel and the 0.8950 level.

Latest News

Technical Analysis – AUDUSD gets bearish vibes

A

Technical Analysis – WTI oil futures in fierce battle with 50.0% Fibo

O

Technical Analysis – GER 40 index marks highs after highs

G

G

Technical Analysis – NZDUSD returns to bearish trend

N

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.

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