Downside Ahead? USDCHF Technicals Point to Continued Weakness
USDCHF pared some of its gains on renewed US dollar weakness. It hits an intraday low of 0.79889 and is currently trading around 0.79920. Intraday bias appears to be bearish as long as resistance 0.80605 (200- 4H EMA). T…
USDCHF pared some of its gains on renewed US dollar weakness. It hits an intraday low of 0.79889 and is currently trading around 0.79920. Intraday bias appears to be bearish as long as resistance 0.80605 (200- 4H EMA).
Technical Analysis Points to Further Downside
The pair is trading below the 55-EMA, below the 200 EMA, and 365 EMA on the 4-hour chart, indicating a bearish trend. The immediate resistance is at 0.8000 a break above targets 0.8050/0.8090/0.8140/0.8180/0.8250/0.8300.
Support Levels and Potential Declines
On the downside, near-term support is around 0.7950, any violation below will drag the pair to 0.7920/0.7900/0.7860/0.7800.
Indicators (4-hour chart)
CCI (50) - Bullish
Directional movement Index - bearish
Trading Strategy Recommendation
It is good to sell on rallies around 0.8020 with a stop-loss at 0.8065 for a TP of 0.7870.
