USDCHF Downward Trend Continues Owing to Ongoing USD Selling Bias

USDCHF Price Analysis – April 20

During the first half of the European session on Wednesday, the USDCHF pair continued its downward trend, falling to seven-week lows near 0.9135 level. In the wake of USD weakness, the pair appears to be having trouble staging a meaningful rebound. As of this writing, the pair is trading around the 0.9160 level, unchanged on the day.

Key Levels
Resistance Levels: 0.9472, 0.9375, 0.9213
Support Levels: 0.9129, 0.8998, 0.8757
USDCHF Long term Trend: Ranging
USDCHF is currently trading below its 5 and 13 moving average, suggesting a downward trend. Markets may suggest that price would test a new low at 0.9093 if the ascending trendline is breached. A turnaround from the downtrend channel’s upper boundary would be another warning in favor of the downtrend’s continuation.

At the present moment, the failure of the 61.8 percent pullback of 0.9901 to 0.8757 at 0.9472 suggests that the bounce from 0.8757 was most likely just a corrective step. That is, the larger downturn from 1.0237 could still be ongoing. Traders’ eyes will be on the downside momentum of the fall from 0.9472 to see if the 0.8757 low can be broken.
USDCHF Short term Trend: Bearish
The USDCHF is still stuck in a range that started at a temporary high of 0.9472. The intraday sentiment is initially bearish. If there is another rebound, upside capacity should be restricted by the 0.9213 former support level, which has now turned into a resistance level, signaling the start of a new decline.

A breakout of 0.9129 low, on the other hand, could result in a 61.8 percent projection from 0.9902 to 0.8998 from 0.9304 at 0.8757 next. The pair struggled to profit from the previous session’s rebound attempts, and a strong break below 0.9150 does not prevent the 0.9100 level from being tested.

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