USDCHF Selling Bias Continues for the 2nd Day in a Row Beneath the 0.9087 Level

USDCHF Selling Bias Continues for the 2nd Day in a Row Beneath the 0.9087 Level

USDCHF Price Analysis – October 20

Intraday selling of the US dollar has accelerated since the beginning of the European session and over the last hour pushed the USDCHF pair to monthly lows in the region of 0.9075-70. Uncertainty over US fiscal stimulus has eroded the dollar and put pressure.

Key Levels
Resistance Levels: 0.9467, 0.9296, 0.9181
Support Levels: 0.9050, 0.8998, 0.8639
USDCHF Long term Trend: Bearish
The downside tick pushed the USDCHF off the 0.9165 zones, or more than the weekly highs recorded the previous day and was supported by fresh selling around the US dollar. With the most recent drop, the pair appears to have found recognition below 0.9100 and remains vulnerable to further slide.

In a broader context, the decline from 1.0231 is seen as the third phase of the trend from 1.0342 (high). There are no clear signs of ending yet. On starting, the next target is a 138.2% forecast from 1.0342 to 0.9181 from 1.0231 at 0.8639 levels. However, a strong breakout of the 0.9370 support level, which turned the resistance level, would be an early sign of a trend reversal and would draw attention to the key 0.9902 resistance level for a test.

USDCHF Short term Trend: Bearish
USDCHF intraday bias holds steady as it stays in the range beyond the temporary low of 0.9050. Another plunge is yet anticipated while maintaining the resistance level of 0.9200. On the other hand, a breakout of the 0.9050 level may test the 0.8998 low level. The RSI stays negative throughout the day and may maintain the negative bias beneath 0.9181 for now.

A solid breakout may lead to a resumption of a stronger downtrend. On the other hand, a breakout of the 0.9200 level may extend the corrective pattern from the 0.8998 level with a fresh rally to the 0.9296 resistance level and beyond. The general weakness of the US dollar was seen as one of the key factors weighing on the USDCHF pair.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.