- USDCHF ends the week in red
- MACD and RSI in negative region
USDCHF is moving slightly higher after the retreat towards a fresh four-month low of 0.8630. The pair failed to have a closing day beneath the 0.8665 barrier, which is acting as a significant support level.
Technically, the RSI is flattening near the 30 level, while the MACD is extending its bearish momentum beneath its trigger line.
Should the bulls return, they will first push for a move above the 20-day simple moving average (SMA) at 0.8765. Then, they will fight for a breakout above 0.8820. If efforts prove successful, the pair may advance towards the 50-day SMA at 0.8900 ahead of the 200-day SMA at 0.8933.
Nevertheless, any additional declines could remain attractive to traders unless the price exits the 0.8665 support level. If that bearish scenario unfolds, the pair could tumble towards the 0.8550 base, taken from the low on July 27.
In brief, USDCHF is heading for a negative weekly close, but as long as it trades above 0.8665, buying the dip could be a favorable play.
