USDCHF Slips Under 0.8793 Low As Downside Stays Sustained by US Dollar Selling

Azeez Mustapha
5 January 2021 | Updated: 5 January 2021

USDCHF Price Analysis – January 5

The USDCHF pair refreshed multi-year lows during the early North American session, with sellers now looking to extend the downward trajectory further below the 0.8793 low marks. The downtick was exclusively boosted by sustained US dollar selling as investors remain convinced about the likelihood of more US financial aid packages.

Key Levels
Resistance Levels: 0.9187, 0.8998, 0.8858
Support Levels: 0.8793, 0.8746, 0.8639
USDCHF Long term Trend: Bearish
The USDCHF met renewed selling at the beginning of the day 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 0.8789 level with no sign of recovery.

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 0.8789 level. The present intraday bias stays on the downside. In the scenario of another recovery, USDCHF upside may be restrained by 0.8822 support turned resistance level to usher in another decline.

On the downside, the sustained breach of 0.8793 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 0.8918 level holds intact, marginal weakness is envisaged but reckon 0.8858 level may remain intact. Only beyond the 0.8918 level risks gain towards the 0.8998 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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Azeez Mustapha

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.