USD/CHF Price Analysis: Sellers need to break 0.9780 support for entry
- USD/CHF prints three-day downtrend to extend pullback from monthly peak.
- Three-week-old ascending support line holds the gate for bears.
- Downside break of 20-SMA, bearish MACD signals hint at further downside.
- Buyers need to cross immediate resistance line to retake control.
USD/CHF remains pressured near the intraday low of 0.9785 as bears approach the short-term key support line during Tuesday’s initial Asian session. In doing so, the Swiss currency (CHF) pair portrays a three-day downtrend while extending Friday’s pullback from the highest levels since mid-July.
That said, the quote’s latest weakness takes clues from the bearish MACD signals, downbeat RSI (14) and its break of the 20-SMA support, now resistance around 0.9810.
However, the sellers need validation from an upward slopping support line from early August, at 0.9780 by the press time, to welcome USD/CHF bears.
Following that, a downward trajectory towards the 38.2% Fibonacci retracement level of the pair’s upside from August 11 to September 01 can’t be ruled out.
Meanwhile, the 20-SMA hurdle surrounding 0.9810 precedes the immediate resistance line from the last Thursday, close to 0.9830 at the latest, to restrict the short-term recovery of the USD/CHF pair. Also acting as an upside filter is the monthly peak surrounding 0.9860.
Overall, USD/CHF remains on the bear’s radar but the 0.9780 could work as a trigger for the fresh selling.
USD/CHF: Four-hour chart
Trend: Further weakness expected