Fri, Jun 24, 2022 @ 23:12 GMT
HomeContributorsTechnical AnalysisUSDCHF Tumbles Following Pullback Of 0.9840, Prints 4-Month Low

USDCHF Tumbles Following Pullback Of 0.9840, Prints 4-Month Low

USDCHF has been underperforming in the past four days, breaking back below the strong psychological level of 0.9700 and challenged a fresh four-month low near the 0.9600 handle. When looking at the bigger picture the pair lacks a clear trend and has been consolidating within the 1.0340 and the 0.9420 barriers.

In the daily timeframe, prices had a pullback of the mid-level of the Bollinger band and the 40-simple moving average and based on the technical indicators, momentum remains to the downside. The MACD oscillator is falling and is strengthening its bearish movement below the trigger and zero lines, however, the RSI indicator is sloping slightly north but is holding in negative territory.

If price action remains below the lower band of the Bollinger band, further losses should see the September low of 0.9560 acting as a major support. A drop below the aforementioned level would reinforce the bearish structure in the short-term and the way towards the next key support of 0.9420.

In the event of an upside reversal, a break above 0.9700 would shift the short-term outlook to a more neutral one as it could push the pair to the 0.9840 resistance level.

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