USDCHF Continues Downside Plunge Towards 0.9000 Level

USDCHF Price Analysis – December 1

USDCHF continued its losing streak on Tuesday and plunged towards the 0.9000 level. In doing so, the pair marked reversal from the 0.9100 zones after key fundamentals on the Swiss GDP came positive.

Key Levels
Resistance Levels: 0.9207, 0.9150, 0.9055
Support Levels: 0.8998, 0.8943, 0.8850
USDCHF Long-term Trend: Bearish
More broadly, despite the USDCHF rally from 0.8998 bottom to 0.9296 levels in late September, the subsequent erratic drop to 0.9000 during the short November breakout of 0.8998 to 0.8983 low after the NFP due to general signals of dollar weakness. The downtrend has resumed and may show new lows below 0.9000.

The fall from 1.0231 is seen as the third phase of the cycle from 1.0342, and there are no clear signs of completion yet. However, on the other hand, 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 for a test.
USDCHF Short-term Trend: Bearish
The intraday bias of USDCHF has changed to bearish with the current trend. A sustained decline is preferred until minor 0.9050 resistance is attempted. On the other hand, a decisive break of the 0.8998 level could resume a larger downtrend. On the other hand, a break above the minor resistance at 0.9100 could push the bias back up towards the 0.9191/9207 resistance zone.

The pair has reached a bearish lower high in the past two weeks and now appears poised to test the Nov 9 low at 0.8980. The bearish outlook is supported by the descending moving averages 5 and 13 and the reading below 40 on the Relative Strength Index.

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