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USD/CHF: Bearish Momentum Continues as Dollar Weakens

USDCHF was one of the worst performers this month and lost more than 250 pips on board-based US dollar weakness. It hits a low of 0.79595 and is currently trading around 0.79745. Short-term bias appears to be bearish as long as the resistance 0.8250 holds.  

Technical Analysis Points to Further Downside


The pair is trading below the   55-EMA, 200 EMA, and 365 EMA on the monthly chart, indicating a bearish trend. The immediate resistance is at  0.8050, any break above targets 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 0.7900/0.7860/0.7700.

Indicators (Monthly chart)

CCI (50) - Bearish

Directional Movement Index -  Bearish

Trading Strategy Recommendation

It is good to sell on rallies around 0.8048-50 with a stop-loss at 0.8090 for a TP of 0.7800.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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