- USD/CHF snaps four-day downtrend but lacks upside momentum.
- Two-month-old falling trend line, 50-day EMA adds to the upside filters.
USD/CHF consolidates the latest losses around 0.8960, up 0.05% intraday, as European traders brace for Brussels’ bell on Thursday.
In doing so, the quote keeps the previous day’s U-turn from the lowest since February 17 even as the Momentum line struggles in the negative territory.
Hence, the pair’s upside momentum needs further strength, which in turn seeks a clear break of May 10 low of 0.8985 for confirmation.
It should, however, be noted that a downward sloping trend line from mid-April and 50-day EMA, respectively around 0.9030 and 0.9060, preceded by the 0.9000 threshold, also test the USD/CHF bulls.
Meanwhile, USD/CHF sellers have a tough task on hand, to break the 0.8925-15 support zone, before extending the south-run from April.
Also acting as the challenges for the pair bears, below 0.8915, are lows marked during February and late April, around 0.8870 and 0.8840 in that order.
USD/CHF daily chart
Trend: Bearish
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