USDCHF Price Analysis – February 23
USDCHF has been outperforming during the European session breaking the above-known barriers. The pair emerges from lows at 0.8949 level while sustaining its upside run past the 0.9000 level. At the moment, US Dollar Index (DXY), is down 0.1% on the day after it rose to a daily high of 90.57 but reversed its direction with US T-bond yields paring early gains.
Key Levels
Resistance Levels: 0.9304, 0.9187, 0.9093
Support Levels: 0.8950, 0.8870, 0.8757
USDCHF Long term Trend: Ranging
After plunging to 0.8949 the USDCHF pair staged a decisive rebound past 0.9000. With the broad-based USD weakness remaining intact on Tuesday, the pair may continue to climb to fresh highs. Looking at the daily picture, the pair is still developing within an ascending movement after its bounce from the prior week low at 0.8871 level.
If price action remains above the ascending trendline, there is scope to test the immediate horizontal barrier at the 0.9045 level. Clearing this key level would see additional gains towards the 0.9093 barriers. If the predetermined resistance level holds, the currency pair could bounce off and re-test the support at 0.8920.
USDCHF Short term Trend: Bullish
The intraday bias in USDCHF stays at the upside for the moment, however, more sideways trading could be seen. On the upside, above 0.9045 level may restart the corrective advance from 0.8757 level. The following goal is the 100% forecast of 0.8757 to 0.9045 from 0.8870 at 0.9187 levels.
Meanwhile, on the downside, the breach of 0.8870 level may alter bias to the downside for 0.8822 and then 0.8757 low level. The exchange rate could likely gain support from the moving average 5 and 13 around 0.8970 and the horizontal support at 0.8950. Thus, some upside potential could prevail in the market.
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Article Info
Last Updated: February 23rd, 2021
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