- USD/CHF extends the previous day’s decline on Tuesday.
- More downside envisioned if price breaks below 0.8960.
- Oversold MACD hints at overstretched selling opportunities.
The USD/CHF pair remains on track of daily losses in the Asian session. There is a range bound movement in the pair consisting of 15-pips for the time being.
At the time of writing, the USD/CHF pair is trading at 0.8963, down 0.10% on the day.
USD/CHF daily chart
-637575135350219399.png)
On the daily chart, the pair has been consolidating near the 0.8960 mark, which marks the formation of multiple bottoms. The pair is hovering in the range last seen in late February. Thus, making it a crucial level to decide the price action for the pair.
Market participants could witness significant selling opportunities if price makes a sustained move below the session’s low at 0.8959. The bears would meet the first stop at the February 23 low at 0.8948. It would clear the path for more downhill towards the February 17 low at 0.8920.
The monthly downward trend that began in April from the highs of 0.9472 would likely retest the support levels last seen in late January at the 0.8860 horizontal support level.
Alternatively, the oversold Moving Average Convergence Divergence (MACD) indicator, if it shows any uptick, then price could crawl back to the previous day high at 0.9002 at first and make up to the 0.9045 the horizontal resistance level later.
The upside optimism could motivate price to extend towards the highs of May 13 at 0.9093.
USD/CHF Additional Levels
Share
