Home Forex It will retreat from the monthly high below 0.9100 within a rising wedge

It will retreat from the monthly high below 0.9100 within a rising wedge

by SuperiorInvest


  • USD/CHF is resetting an intraday low while rebounding from a six-week high.
  • A reversal from the resistance line of a rising bearish pattern teased sellers despite positive oscillators.
  • The 50-DMA reinforces the confluence of 0.9000 support, a break of which could welcome Swiss franc buyers.

USD/CHF is accepting bids to recover from intraday lows near 0.9040 as it posted its first daily loss in four on Friday. At the same time, the Swiss franc pair is retreating from the resistance line of the three-week-old growing wedge bear diagram formation.

However, it is worth noting that the MACD indicator is flashing bullish signals and the RSI line (14) is also above the 50.0 level, which in turn indicates bullish strength for the USD/CHF pair and keeps the bear off the table.

Also challenging for USD/CHF sellers is the confluence of the 0.9000 support comprising the 50-DMA and the lower line of the wedge mentioned above.

Should USD/CHF manage to secure a daily close below 0.9000, it will theoretically become vulnerable to a resumption of the annual low by a drop to 0.8750.

This means that multiple levels around 0.8860-50 and the monthly bearish low of 0.8820 may encourage sellers.

Meanwhile, the current location of the above line of the rising wedge, near 0.9075, precedes the rounded number of 0.9100 and the April 10 peak around 0.9115 to challenge USD/CHF buyer.

This was followed by an increase towards 61.8% Fibonacci retracement level from March-May decline near 0.9205 cannot be ruled out.

USD/CHF: Daily chart

Trend: A pullback is expected

Source Link

Related Posts

%d bloggers like this: