Sun, Jan 17, 2021 @ 06:27 GMT
Home Contributors Technical Analysis USDCHF Reverses Higher But Remains Bearish in Medium Term

USDCHF Reverses Higher But Remains Bearish in Medium Term

USDCHF rebounded on the 38.2% Fibonacci retracement level of the upleg from 0.9185 to 1.0235 near 0.9830 during yesterday’s trading session, touching the 20-day simple moving average (SMA).

In the short-term, the market could turn positive if the RSI keeps moving around the 50 level, however the red Tenkan-sen line, as well as the blue Kijun-sen line, hold flat. The stochastic oscillator seems ready to turn higher again as the %K line touches the oversold zone and is sloping up.

An extension to the upside could find immediate resistance at the 40-day SMA currently at 0.9910. Further up, resistance could run towards the 0.9950 barrier, taken from the latest highs and the 23.6% Fibonacci region of 0.9985.

On the other hand, if the pair weakens again and declines below the 38.2% Fibonacci region of 0.9830, the 50.0% Fibo of 0.9707 and the 0.9695 support could provide immediate levels for traders.

In the medium-term picture, USDCHF has been trading bearish in the past three months after the close below the 27-month high of 1.0235. Still, if the pair manages to cross above 1.0000, the bearish outlook could switch to a bullish one.

XM is a fully regulated next-generation financial services provider of online trading on currency exchange, commodities, equity indices, precious metals and energies, with services to clients from over 196 countries worldwide. Founded in 2009 by market experts with extensive knowledge of the global forex and capital markets and with the aim to ensure fair and reliable trading conditions for every client, XM has reached international recognition by virtue of its unbeatable execution of orders, spreads as low as zero pips on over 50 currency pairs, gold and silver, flexible leverage up to 888:1, and personalized customer engagement to foster clients’ success.

Featured Analysis

Learn Forex Trading