Sat, Jan 22, 2022 @ 08:07 GMT
HomeContributorsTechnical AnalysisUSDCHF Meets Resistance At 50-SMA, Long-Term Bullish Outlook

USDCHF Meets Resistance At 50-SMA, Long-Term Bullish Outlook

USDCHF is currently facing resistance at its 50-day simple moving average (SMA), after its late November pullback. However, the long-term prospects for the pair remain cautiously bullish amid successive higher lows.
Short-term momentum indicators on the other hand, are supporting a negative bias, as the RSI is located below its 50 neutral mark. The MACD is found under its red signal line and is looking ready to cross below zero, which could be another sign of strengthening negative momentum.

Should the price break above its 50-day SMA currently at 0.9215, a positive bias could resurface, sending the price to test the 0.9272 barrier. Surpassing the latter could open the door towards the 0.9370 obstacle before the bulls shift their attention towards the 0.9472 resistance.

On the flip side, if the bears resurface, initial support might be found at the region which consists of the 200-day SMA currently at 0.9176, and the 0.9157 barrier. A break below that area could pressure the price towards the uptrend line drawn from the January lows. Crossing below this crucial point could turn the fortunes around for the pair, paving the way towards the 0.9084 obstacle.

In brief, despite the negative bias, the long-term outlook for the pair is cautiously bullish. For sentiment to change, the bears would need to break below the uptrend line.

XM.comhttp://clicks.pipaffiliates.com/c?c=231129&l=en&p=0
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