USDCHF Upside Momentum Stays Contained Under the 0.8900 Level

USDCHF Price Analysis – December 22

The USDCHF pair to 0.8900 level in the prior session returns 0.8845 low today while erasing earlier gains. The pair stays pressured in a tight range and is unable to preserve its momentum amid a lack of significant fundamental drivers. As of writing, the pair remains flat on the day at 0.8850 level.

Key Levels
Resistance Levels: 0.9100, 0.8998, 0.8948
Support Levels: 0.8851, 0.8746, 0.8639
USDCHF Long term Trend: Bearish
USDCHF is moving below the 13 moving average, indicating a continuation of a downward trend. Markets could indicate that price could test a further downside at 0.8800 and then resume its move down to 0.8746. Another signal in support of the continuation of the downtrend will be a rebound from the upper border of the downtrend channel.

In a broader context, the decline from 1.0231 is seen as the third phase of the trend from 1.0342. There are no evident signs of finishing now. The following aim should be 138.2% forecast from 1.0342 to 0.9191 levels from 1.0231 at 0.8639 levels. In the subsequent scenario, a breakout of the 0.9296 resistance level is required to signal a mid to long term trend.
USDCHF Short term Trend: Bearish
USDCHF is still capped in a range from the temporary low of 0.8822 level. Initially, intraday sentiment remains neutral. In the event of another bounce, upside potential should be limited by the 0.8982 support level, which has turned into a resistance level, which will lead to the renewal of another decline.

On the other hand, a breakout of 0.8851 could lead to a 61.8% forecast from 0.9902 to 0.8998 from 0.9296 at 0.8746 next. The pair failed to capitalize on the rebound attempts made in the prior session and a clear breach beneath 0.8850 may not deter 0.8800 from being tested.

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