HomeContributorsTechnical AnalysisUSDCHF Posts More Than 2-month Low

USDCHF Posts More Than 2-month Low

  • USDCHF finds strong obstacle at 200-day SMA
  • MACD endorses negative momentum; RSI near oversold region

USDCHF plunged to a new more than two-month low of 0.8879 today but has found support at the 200-day simple moving average (SMA) in the 0.8895 area. 

 The pair is currently in a bearish retracement with the 20- and the 50-day SMAs posting a negative crossover.

According to the technical oscillators, the MACD is extending its negative momentum beneath its trigger and zero lines, while the RSI is moving horizontally near the 30 level.

In case of steeper negative actions, the market may retest the 0.8740 support, while even lower the 0.8455 barricade is waiting to endorse the bearish outlook.

On the other hand, a successful rebound off 0.8895 could drive the market towards the 0.9000 psychological level. Above this restrictive level, the 20- and the 50-day SMAs around 0.9050 and 0.9075 respectively may attract traders’ attention.

All in all, USDCHF is creating a negative move in the short-term view and a slip beneath the flat 200-day SMA could open the way for more decreases.   

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