USDCHF Extends Retracement Lower As Upside Stays Limited Beneath 0.9800 Level

USDCHF Price Analysis – May 8

USDCHF sits close to 0.9700 level, slipping 0.15 percent on the day as it continues to the American session on Friday. The FX pair extends downward retracement to level 0.9700 while remaining restricted under level 0.9800. The selloff lasted for Friday’s second day in a row session and was backed by the dominant selling sentiment on the US dollar.

Key Levels
Resistance Levels: 1.0231, 1.0027, 0.9800
Support Levels: 0.9600, 0.9440, 0.9181

USDCHF Long term Trend: Ranging

As a consequence, the retracement level of the pair’s one-week-old surge in USDCHF at 23.6 percent attracts bulls about 0.9724 mark. A horizontal line from the previous session, nevertheless, retains the barrier for the pair’s subsequent break-up to the monthly peak of 0.9784 level around 0.9766 level.

The foregoing horizontal support about 0.9700 level on the downward serves as an instant obstacle for bears. A convergence of the MA 5 and MA 13 at a retracement of 38.2 percent between 0.9720/24 level would then be a hard nut to crack for bears to smash.

USDCHF Short term Trend: Ranging

USDCHF has withdrawn ahead of the resistance level of 0.9800 and intraday bias is first rendered cautious. As a whole, consolidation from level 0.9902 is yet ongoing. Beneath 0.9669 minor support level, the downside for 0.9600 support level, and probably beneath, may shift bias.

However, uncertainty may bring a turnaround and may be limited by a 61.8 percent retraction of 0.9181 to 0.9902 at 0.9440 levels. On the contrary, the resistance level breach of 0.9800 may reach a test at the resistance level of 0.9902.

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