Search ForexCrunch
  • USD/CHF declines from the highest in nearly six weeks.
  • 61.8% of Fibonacci retracement acts as immediate support.
  • Monthly trend line resistance limits nearby upside.

USD/CHF takes U-turn from one-month-old resistance line while trading around 0.9965 amid the initial trading session on Tuesday.

Given the gradual pullback in the 14-bar Relative Strength Index (RSI) from the overbought conditions, prices might witness additional downside. In doing so, 61.8% Fibonacci retracement of October month downside, at 0.9935, acts as immediate support.

However, 200-bar Simple Moving Average (SMA) and one-week-old rising trend line, around 0.9920, will challenge bears afterward.

On the upside, the pair’s successful rise past-0.9990 resistance line needs to conquer 1.0000 psychological magnet to lure buyers towards the previous month high near 1.0030.

USD/CHF 4-hour chart

Trend: Pullback expected