#USDCHF @ 0.89115 fades bounce off intraday low, extends previous day’s pullback from two-week high., @nehcap view: Further weakness expected (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• USD/CHF fades bounce off intraday low, extends previous day’s pullback from two-week high.
• Oversold RSI, 38.2% Fibonacci retracement prod Swiss Franc buyers.
• Clear downside break of one-week-old ascending trend line, 200-HMA suggest pair’s further fall amid bearish MACD signals.

The pair currently trades last at 0.89115.

The previous day high was 0.8995 while the previous day low was 0.8924. The daily 38.2% Fib levels comes at 0.8951, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8968, expected to provide resistance.

USD/CHF holds lower grounds near the intraday bottom of 0.8907, retreating of late, as bears keep the reins for the second consecutive day heading into Wednesday’s European session.

In doing so, the Swiss Franc (CHF) pair extends the previous day’s U-turn from the highest level in a week.

That said, the bearish bias takes clues from the downbeat MACD conditions and a clear break of the previous support line stretched from April 26, as well as sustained trading below the 200-Hour Moving Average (HMA).

However, the 38.2% Fibonacci retracement level of April 19-26 fall, near 0.8910, joins the nearly oversold RSI (14) line to challenge the USD/CHF bears.

Hence, the USD/CHF pair is likely to decline further but the fresh selling may wait for a successful trading below 0.8910.

Following that, the 0.8900 round figure may act as an extra filter toward the south before directing the bears toward the previous monthly low of around 0.8850, also the lowest level since January 2021.

Should the Swiss Franc pair remains bearish past 0.8850, the 0.8800 round figure and the year 2021 low of near 0.8755 can lure the sellers.

On the flip side, USD/CHF recovery needs validation from the 200-HMA and the support-turned-resistance line, respectively near 0.8925 and 0.8950.

Even so, multiple hurdles near 0.8970 and the 0.9000 psychological magnet can prod the pair buyers before giving them control.

Trend: Further weakness expected

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.8912 at the time of writing. Pair opened at 0.8932 and is trading with a change of -0.22% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.8967, 50 SMA 0.9145, 100 SMA @ 0.9196 and 200 SMA @ 0.9441.

The previous day high was 0.8995 while the previous day low was 0.8924. The daily 38.2% Fib levels comes at 0.8951, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8968, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8905, 0.8879, 0.8834
• Pivot resistance is noted at 0.8977, 0.9021, 0.9048

[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group