Wed, Feb 01, 2023 @ 09:21 GMT
HomeContributorsTechnical AnalysisUSDCHF Bearish, Challenges Yesterday's 14½-Month Low

USDCHF Bearish, Challenges Yesterday’s 14½-Month Low

USDCHF recorded a fourteen-and-a-half-month low of 0.9492 during yesterday’s trading. Today the pair has been edging lower and currently trades in proximity to yesterday’s low.

The bias is clearly tilted to the downside – the MACD is negative as well as below the red signal line, while RSI is well into bearish territory at 32 and keeps heading lower. Notice that RSI is close to oversold levels.

If the price reverses course, resistance could be met around 0.96, a potential psychological level. Further up, the area around 0.9650 was a rather congested one in the recent past and might act as a barrier to the upside as well.

On the downside, yesterday’s low seems to be providing immediate support. The price is close to this level at the moment and should it cross below, additional support could come around the 0.94 handle, another potential psychological mark.

Price action taking place below both the 50- and 200-day moving averages (MAs) supports the negative medium-term signal given by the bearish cross that was recorded in late May when the 50-day MA moved below the 200-day one.

Overall, the pair is bearish in the short- and medium-term.
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