Sun, May 09, 2021 @ 23:31 GMT
Home Contributors Technical Analysis USD/CHF Corrects Lower, 0.9300 Holds The Key

USD/CHF Corrects Lower, 0.9300 Holds The Key

Key Highlights

  • USD/CHF struggled near 0.9475 and started a downside correction.
  • It traded below a major bullish trend line with support at 0.9415 on the 4-hours chart.
  • EUR/USD is attempting a steady recovery above 1.1850, GBP/USD failed to settle above 1.3900.
  • Gold price is showing positive signs above $1,700 and $1,720.

USD/CHF Technical Analysis

This past week, the US Dollar broke the 0.9400 resistance against the Swiss Franc. However, USD/CHF faced resistance near 0.9475 and it recently started a downside correction.

Looking at the 4-hours chart, the pair traded as high as 0.9472 before starting a downside correction. There was a break below the 0.9450 and 0.9425 support levels. It even traded below a major bullish trend line with support at 0.9415.

There was a clear break below the 50% Fib retracement level of the upward move from the 0.9225 low to 0.9472 high. The next key support is near the 0.9300 level.

Any more losses might call for a test of the 0.9280 support. It is close to the 76.4% Fib retracement level of the upward move from the 0.9225 low to 0.9472 high. Conversely, the pair could stay above 0.9300 and start a fresh increase.

An immediate resistance is near the 0.9380 level. The main hurdle is now at 0.9400, above which the pair could rise steadily towards the 0.9475 level.

Overall, USD/CHF must stay above 0.9300 for a fresh increase. Looking at EUR/USD, both are showing positive signs, but facing hurdles near 1.1880 and 1.3920.

Economic Releases

  • Germany’s Services PMI for March 2021 – Forecast 50.8, versus 50.8 previous.
  • Euro Zone Services PMI for March 2021 – Forecast 48.8, versus 48.8 previous.
  • UK Services PMI for March 2021 – Forecast 56.8, versus 56.8 previous.
  • FOMC Meeting Minutes.

 

Titan FXhttp://titanfx.com
Titan FX is a technology driven online ECN forex and commodities broker that provides traders with next generation trading conditions, institutional grade spreads, fast trade execution, deep top tier liquidity and the security of financial registration and oversight.

Featured Analysis

Learn Forex Trading