Bearish Trend to Continue on Break Below 1.0008

Bearish Trend to Continue on Break Below 1.0008


USD/CHF Price Outlook, Charts and Analysis

  • US Dollar looking ahead to PCE figures and two FED members speeches today.
  • Looking at USD/CHF price action since mid-May

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USD/CHF– Trading Lower

On May 13, USD/CHF began a downtrend after carving out a lower-low at 1.0050.The pair continued even lower after failing four times in a row to break above 1.0121, but rebounded on May 24 from the level discussed in our previous article, 1.0008. However, price rallied after and failed to overtake 1.0098, effectively capping any positive momentum.

Alongside this development RSI remained below 50, emphasizing the strength of bearish momentum.

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USD/CHF DAILY PRICE CHART (FEB 4, 2019- May 31, 2019)

USD/CHF Price Daily 31-05-19

A closer look at the USD/CHF daily chart shows the bears trying to retake initiative. However, any move lower is contingent on breaking and closing below the May 24 low at 1.0008. This development could lead price to a lower multi-day trading range (0.9920- 1.0008), with an increased likelihood of seeing the lower end of the range. Weekly support zones of 0.9995-0.9988 and 0.9977 – 0.9971 (61.8% Fib) should be monitored. Additionally, key supports levels at 0.9958 and 0.9939 also need to be considered.

A close above 1.0130 could mean the beginning of a bullish move towards 1.0215. Weekly and daily resistances at 1.0147, 1.0166, 1.0186 and 1.0201 should be watched closely.

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USD/CHF Two-HOUR PRICE CHART (May 21– 31, 2019)

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Looking at the 2-hr chart, today USD/CHF tested the neckline of a double-top pattern at 1.0049 three times, however, it rose after. If the price breaks and remains below 1.0049 it could trade towards the May 24 low at 1.0008. The daily support level at 1.0024 should be in focus as well. A break below 1.0008 could lead the pair to trade towards the zone of 0.9995 – 0.9988.

A break above 1.0085 could lead USD/CHF towards the May 22 high at 1.0099. If the pair breaks the aforementioned high price might edge even higher towards the May 21 peak at 1.0120. Weekly resistance at 1.0108 should also be watched closely.

Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi



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