USDCHF Tumbles Beneath 0.9150 as US Dollar Index Stays Pressured

USDCHF Price Analysis – August 30

In early European trading hours on Tuesday, the US dollar fell against the Swiss franc. The pair retraced back beneath the 0.9150 regions and recorded a low of 0.9130 at the time of this post. The US Dollar Index (DXY) rises in perfect sync with the benchmark 10-year rates, staying pressured under 93.00, limiting USDCHF growth.

Key Levels
Resistance Levels: 0.9375, 0.9275, 0.9175
Support Levels: 0.9101, 0.9050, 0.9000

USDCHF Long term Trend: Ranging
Since the USDCHF failed to clear the immediate upside obstacle near 0.9200, the trend currently favors the sellers, with pricing below the MA 5 and MA 13 and around 0.9130 becoming a difficult nut to crack for USDCHF bearish. While we maintain a neutral bias above this level, this continues to signal that support is likely to hold.

In a broader sense, the decline from the 0.9242 level is considered as the third phase of the pattern from the 0.9472 (high) level. There is still no definitive completion date. If the trend continues, the next target might be a projection of 138.2 percent from 0.9472 at 0.9018 levels to 0.9200 levels.
USDCHF Short term Trend: Ranging
The USDCHF has retreated from the 0.9200 level, taking out the confluence zone of 0.9150. Intraday bias is moved back to the downside for a 0.9101 low-level re-test. There’s a good chance that the firm break will start a larger downward trend there. A breach of the 0.9175 minor resistance level on the upside is necessary to imply the achievement of the decline from the level of 0.9242.

Nevertheless in the case of a recovery, however, the trend may currently remain somewhat bearish. Even so, a big change of 0.9150 support turned resistance level could be an early indication of trend reversal and moving focus back to 0.9200 major barriers for validation. Continuous trading below the moving average, around 0.9130, points USDCHF in the direction of a downward line, around 0.9101.

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