USDCHF Rebound Pauses Under 0.8920 Level As USD Factors & Risk Appetite Dictates the Pace

USDCHF Price Analysis – January 12

The USDCHF pair rebound continues to the upside but pauses temporarily under the 0.8920 level after rallying as high as the 0.8916 level. The major factor hurting risk assets on the day has been the rise in US real and nominal bond yields which continues to dictates pace.

Key Levels
Resistance Levels: 0.9187, 0.8998, 0.8920
Support Levels: 0.8858, 0.8757, 0.8639
USDCHF Long term Trend: Ranging
The USDCHF is confronted by a mild resistance at the 0.8920 level limiting its upside advance temporarily, selling at the 0.8816 level, and declined steadily due to continued broad-based USD weakness on risk sentiment. The price tumbled to an intraday low at the 0.8890 level.

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.
USDCHF Short term Trend: Ranging
On the 4-hour time frame, the USDCHF edged higher to the 0.8920 level in prior sessions. The present intraday bias stays on the upside. In the scenario of another recovery, the USDCHF upside may be restrained by the 0.8920 resistance level to usher in another slight decline.

On the downside, the sustained breach of 0.8858 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 0.8920 level holds intact, marginal weakness is envisaged but reckon 0.8858 level may remain intact. Only beyond the 0.8920 level risks gain towards the 0.8998 level.

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