Technical Analysis – USDCHF may find some footing at 2-year lows; bearish in medium-term

Christina Parthenidou, XM Investment Research Desk

USDCHF fell aggressively on Thursday to two-year lows and near the 0.9430 crucial support region taken from the 2016-2017 period, approaching the 78.6% Fibonacci of the 0.9186-1.0234 upleg.

Hence, since the RSI and the Stochastics are fluctuating well into the oversold area too, the odds for a rebound are increasing, shifting attention towards the 0.9575-0.9596 restrictive zone that includes the 61.8% Fibonacci. Higher, the bulls may retest the 0.9560 barrier before meeting the 50% Fibonacci of 0.9715, turning the bearish medium-term picture back to neutral.

Alternatively, if the price tumbles below 0.9430, the way would open towards the 2018 lows printed between 0.9258 and 0.9200. Any close below that floor would violate the long-term range started in 2015, pushing support to 0.9150.

Summarizing, USDCHF is in a strong bearish move with potential for an upside correction in the short-term. In the medium-term, the outlook is likely to stay negative unless the price bounces back above 0.9658.