#USDCHF @ 0.99921 remains pressured inside a bearish chart pattern., @nehcap view: Further weakness expected (Pivot Orderbook analysis)

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• USD/CHF remains pressured inside a bearish chart pattern.
• Sustained trading below 50-HMA, downside break of weekly support line also favor sellers.
• Buyers need validation from 1.0075 to refresh multi-month high.

The pair currently trades last at 0.99921.

The previous day high was 1.0148 while the previous day low was 0.9962. The daily 38.2% Fib levels comes at 1.0033, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0077, expected to provide resistance.

USD/CHF holds lower grounds near the parity levels, fading the week-start bounce off 0.9944 inside a rising wedge bearish formation during Tuesday’s Asian session.

In doing so, the Swiss currency pair also extends the previous day’s pullback from the 50-HMA hurdle while keeping Friday’s downside break of a one-week-old ascending support line, now resistance around 1.0085.

Additionally favoring the USD/CHF sellers is the receding bullish bias of the MACD line, as well as the recent lower-high formation.

It should, however, be noted that a clear downside break of the 0.9985 support appears necessary to confirm the rising wedge pattern.

Following that, the recent swing low of around 0.9945 and the previous weekly bottom near 0.9920 could test the USD/CHF bears during the theoretical fall towards 0.9890.

Alternatively, the 50-HMA level surrounding 1.0025 acts as an immediate hurdle to watch during the pair’s fresh recovery, a break of which should question the bearish wedge’s resistance line, close to 1.0040 at the latest.

In a case where USD/CHF rises past 1.0040, the bearish formation gets defied.

However, a broad horizontal area comprising multiple levels marked since October 13, between 1.0066 and 1.0075 will precede the support-turned-resistance line, near 1.0085, to challenge the USD/CHF bulls afterward.

Trend: Further weakness expected

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9999 at the time of writing. Pair opened at 0.9972 and is trading with a change of 0.27% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.993, 50 SMA 0.9772, 100 SMA @ 0.9719 and 200 SMA @ 0.9571.

The previous day high was 1.0148 while the previous day low was 0.9962. The daily 38.2% Fib levels comes at 1.0033, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0077, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9907, 0.9841, 0.9721
• Pivot resistance is noted at 1.0093, 1.0213, 1.0278

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