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.