USDCHF Wobbles Toward Two-Month Lows Beneath the 0.9030 Level Despite the Oversold Condition

USDCHF Price Analysis – November 6

The dollar has resumed its downtrend against the Swiss franc as USDCHF wobbles toward two-month lows beneath the 0.9030 level to reach session lows dangerously despite the oversold condition. The greenback has depreciated about 0.5% so far today amid a broad-based USD weakness with equity markets surging on US election uncertainties.

Key Levels
Resistance Levels: 0.9296, 0.9181, 0.9050
Support Levels: 0.8998, 0.8746, 0.8639
USDCHF Long-term Trend: Bearish
On the technical front of the daily chart, a clear breakout of the 0.9030 level could accelerate the downtrend. Note the August low of 0.8998. A slide below 0.9030 will target the recent low of 0.8998. The recent low of 0.8998 guards the 0.8943 support zone. A dip at 0.8943 is needed to introduce volume to the lows of the 0.8746/0.8639 range.

In a broader context, the decline from 1.0231 is seen as the third cycle of the trend from the 1.0342 high. There are no clear signs of completion yet. On resumption, the next target is 138.2% forecast from 1.0342 to 0.9181 from 1.0231 at 0.8639. However, a strong breakout of the 0.9296 resistance level would be an early sign of a trend reversal and would draw attention to the key 0.9902 resistance level to test.
USDCHF Short-term Trend: Bearish
USDCHF intraday slope remains bearish to retest 0.8998 low. The next nearest target is a 100% forecast from 0.9296 to 0.9030 from 0.9200 at 0.8943. On the other hand, a break of the minor resistance at 0.9133 would change short-term forecasts and neutralize intraday sentiment again.

Further support for recent near-term forecasts is the downward slopes of the 5 and 13 moving averages, which are holding in negative territory. RSI is heading down, the short-term picture remains negative below the 7-week low, and a break below this level will reinforce negative concerns.

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