USDCHF Upside Traction Awaits Break of 0.8920 Barrier as US Dollar Stays on the Back Foot

USDCHF Upside Traction Awaits Break of 0.8920 Barrier as US Dollar Stays on the Back Foot

USDCHF Price Analysis – January 15

The USDCHF pair is on the path to probe the 0.8918 December highs. The upside traction awaits a break of 0.8920 barriers and above would open the path towards the mid 0.9000 level. Recent fundamentals of President-elect Biden’s fiscal plan underlines the negative backdrop for USD that lies ahead.

Key Levels
Resistance Levels: 0.9304, 0.9187, 0.8998
Support Levels: 0.8858, 0.8746, 0.8639
USDCHF Long term Trend: Ranging
USDCHF is moving within the 13 moving average, indicating a continuation of a ranging trend. Markets could indicate that price could test a further downside at 0.8858 and then resume its move down to 0.8746. Another signal in support of the continuation of the consolidation 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 0.9304 resistance level is required to signal a mid to long term uptrend.
USDCHF Short term Trend: Ranging
USDCHF is still capped in a range from the low of 0.8822 level. Initially, intraday sentiment remains neutral. In the event of another bounce, upside potential should be limited by the 0.8998 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 0.8858 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 0.8858 may not deter 0.8800 from being tested.

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.