Technical Analysis – USDCHF meets strong support at 200-day SMA
USDCHF trades within narrow range
RSI indicates an upside movement
USDCHF has been in a tight range over the last ten days with a strong support level at the 200-day simple moving average (SMA) at 0.8895. Currently, the market is standing beneath the ascending trend line and the short-term SMAs, signaling more losses. The MACD is holding near its trigger line and beneath the zero level; however, the RSI is ticking north below the 50 level.
Any movement beneath the tough support of 0.8895 could switch the outlook to strongly negative, hitting the 0.8740 barrier ahead of the bottom from January 31 at 0.8550.
But if there’s a rise above the 0.9000 psychological level, the pair could revisit the 20- and the 50-day SMAs at 0.9035 and 0.9070 respectively. A jump beyond the 0.9155 barricade could switch the bias back to positive, re-challenging the seven-month peak of 0.9223.
Summarizing, USDCHF may extend its bearish movement if there is a slip below the 200-day SMA but as long as it is holding above it, the price is lacking direction.Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
