- USD/CHF bounces off from multi-month low near 0.8930.
- Descending trendline offers strong resistance on 4-hour chart
- MACD remains oversold highlighting risk for aggressive bets.
The USD/CHF pair remains muted in the Asian session. The pair moves in a highly narrow trade band for the time being.
At the time of writing, the USD/CHF pair is trading at 0.8951, down 0.06% for the day.
USD/CHF 4-hour chart
On the 4-hour chart, the pair has been consolidating the gains near the 0.8950 mark. The descending trendline from the highs of 0.9164 acts as a defensive for the bulls. If price makes a sustained move above the intraday high at 0.8957, then it could retest the 20-hour Simple Moving Average (SMA) at 0.8970.
A convincing move beyond the downward price line would encourage USD/CHF bulls further to reach out for the 0.8995, and thereafter the 0.9020 horizontal resistance level.
Alternatively, the Moving Average Convergence Divergence (MACD) indicator remains in the oversold zone with negative bias. If it continues to move lower, then it would dampen the positive sentiment and would push price further down.
In doing so, the immediate support will come out at the previous day’s low at 0.8930. A further breakdown will open the gates for the levels last seen in February. The next probable target for the bears would be the February 16 low at 0.8871.
USD/CHF Additional Levels