“¢ The USD/CHF pair added to the previous session’s heavy losses and dropped to near six-week lows during the early European session on Friday, albeit showed some resilience near the parity mark.
“¢ However, given the overnight break through an important support – comprising of a short-term ascending trend-line and 50-day SMA, the stage seems set for an extension of the recent bearish trajectory.
Currently hovering around another confluence region – 38.2% Fibonacci retracement level of the 0.9813-1.0238 and 100-day SMA, a sustained weakness below the mentioned support will reinforce the negative bias and accelerate the slide towards 50% Fibo. level support near the 0.9970 region.
Technical indicators on the daily chart are holding in the bearish territory and are still far from being in the oversold territory add credence to the bearish outlook. Hence, any subsequent bounce might still be looked as a selling opportunity near the 1.0070-75 region (support break-point).
USD/CHF daily chart
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