USDCHF – Technical
USDCHF – Last week, the movement of this currency pair weakened, breaking down the ascending trendline, as the price was dominated by sellers. The pair weakened, after failing to pass the psychological level of 1.00000 last week. Prices closed the week at 0.9840.The negative bias was captured from the drift away from 61.8% retracement level and the psychological level 1.00000. The USDCHF was seen unable to break this strong 4-month Resistance, while it moved southwards for 3 consecutive days and finally moved below the trendline. The decline found some floor on the 50% Fib. level on August – September rally. This decline posted a weekly low at 0.9843. A drift this week below the latter could suggest the continuation of southwards movement with the next immediate reasonable level to be reached in early January at 0.98115.
The price movements look very strong without any meaningful retest. For now, the selling pressure may continue, given that there has just been a shift in interest from buying to selling, with further room to go down to the nearest support level. Price has left the 200-day moving average and is indicating a tendency to decline according to the RSI indicator movement which is below the 50 level, and has not reached oversold yet.
- Resistance 1 = 0.98750
- Resistance 2 = 0.99030
- Support 1 = 0.98250
- Support 2 = 0.97500
Market Analyst – HF Educational Office – Indonesia
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