USD/CHF technical analysis: Flirting with weekly lows/200-DMA support ahead of the Fed
- The USD/CHF pair failed to find acceptance above a short-term descending trend-line - extending from early-May swing highs and witnessed an intraday pullback on Wednesday.
- The pair retreated break to weekly lows support near the 0.9965 region, which coincides with the very important 200-day SMA and should act as a key pivotal point for traders.
Meanwhile, technical indicators on the daily chart have failed to gain bullish traction and also started losing positive momentum on hourly charts, suggesting that the near-term corrective bounce from multi-month lows might have already run out of the steam.
A sustained break below the mentioned support will reinforce the negative outlook and turn the pair vulnerable to resume its prior bearish trajectory and accelerate the slide towards 0.9940-35 intermediate support en-route the 0.9900 round figure mark.
On a flip side, a strong follow-through buying beyond the trend-lined resistance - currently near the parity mark, might negate the bearish set-up and prompt some aggressive short-covering move towards 1.0075-80 resistance ahead of the 1.0100 handle.
USD/CHF daily chart
This article is published only for general use basic informatory purposes and should not be considered or depended on as a financial or investment advice. Investors should make sure that they understand the risks and seek independent financial advice at all times. CFDS ARE COMPLEX INSTRUMENTS AND COME WITH A HIGH RISK OF LOSING MONEY RAPIDLY DUE TO LEVERAGE.