USDCHF Broadens Bearish Continuation Trend Beneath 0.8900 Level

USDCHF Broadens Bearish Continuation Trend Beneath 0.8900 Level

USDCHF Price Analysis – December 8

USDCHF is trading around the level at 0.8892 having traveled between a range of 0.8914 and 0.8887 level on the day so far. The pair has plunged to its lowest level in 5 years at 0.8885 level as US Dollar Index clings to modest gains near 91.00.


Key Levels
Resistance Levels: 0.9191, 0.9100, 0.8982
Support Levels: 0.8840, 0.8746, 0.8639
USDCHF Long term Trend: Bearish
The USDCHF met renewed selling at the beginning of the day at the 0.8914 level and declined steadily due to continued broad-based USD weakness on risk sentiment. The price tumbled to an intraday low at 0.8887 level before recovering.

Meanwhile, in the larger context, the decline from the 1.0231 level is seen as the third phase of the trend from 1.0342 (high). There is no clear sign of completion yet. It is followed by the 138.2% projection of 1.0342 to 0.9191 level from 1.0231 at 0.8639 level. In any case, a break of 0.9296 resistance level is required to signal medium term bottoming. Otherwise, the trend may stay bearish in case of a rebound.
USDCHF Short term Trend: Bearish
USDCHF edged lower to the 0.8875 level but quickly recovered. The present intraday bias stays neutral first. In the scenario of another recovery, USDCHF upside may be restrained by 0.8982 support turned resistance level to usher in another decline.

On the downside, the breach of 0.8875 level may aim the 61.8% forecast of 0.9902 to 0.8998 levels from 0.9296 at 0.8746 levels next. As long as the 0.8982 level holds intact, marginal weakness is envisaged but reckon 0.8840 level may remain intact. Only beyond the 0.8982 level risks gain towards the 0.9055 level.

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.