#USDCHF @ 0.99468 fades bounce off one-week low inside a bearish chart pattern., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

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• USD/CHF fades bounce off one-week low inside a bearish chart pattern.
• Downbeat oscillators add strength to the bearish bias but 0.9850 appears the key support.
• Buyers need validation from 1.0030 to retake control.

The pair currently trades last at 0.99468.

The previous day high was 1.0021 while the previous day low was 0.9916. The daily 38.2% Fib levels comes at 0.9956, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9981, expected to provide resistance.

USD/CHF remains pressured after the intraday low, extending the previous day’s pullback from a four-month high to 0.9950 heading into Wednesday’s European session. In doing so, the Swiss currency (CHF) pair stays inside a five-week-old rising wedge bearish chart pattern.

In addition to the quote’s latest weakness and the bearish formation around the multi-day top, the bearish MACD signals and the downbeat RSI (14), not oversold, also favor USD/CHF bears of late.

That said, one-week-old horizontal support near 0.9915 lures the intraday sellers ahead of highlighting the stated wedge’s support line, close to 0.9850 by the press time.

Should the quote remains bearish past 0.9850, a slump to the monthly low of around 0.9780 appears imminent during the theoretical south-run targeting the 0.9310 level.

On the flip side, the upper line of the stated wedge, around 1.0030, restricts short-term USD/CHF upside before directing buyers towards the tops marked in June and May, near 1.0050 and 1.0065 in that order.

If USD/CHF bulls keep the reins past 1.0065, the odds favoring a gradual run-up towards the year 2019 peak surrounding 1.0240 can’t be ruled out.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9948 at the time of writing. Pair opened at 0.9972 and is trading with a change of -0.24% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.9802, 50 SMA 0.9695, 100 SMA @ 0.9687 and 200 SMA @ 0.9539.

The previous day high was 1.0021 while the previous day low was 0.9916. The daily 38.2% Fib levels comes at 0.9956, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9981, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9919, 0.9865, 0.9814
• Pivot resistance is noted at 1.0024, 1.0075, 1.0129

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