#USDCHF @ 0.90232 holds lower grounds inside two-month-old bullish chart pattern., @nehcap view: Further downside expected (Pivot Orderbook analysis)

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• USD/CHF holds lower grounds inside two-month-old bullish chart pattern.
• Downbeat MACD, RSI (14) suggest break of wedge towards the south.
• Four-month-long descending support line lures Swiss Franc bears; buyers need validation from 100-DMA

The pair currently trades last at 0.90232.

The previous day high was 0.9098 while the previous day low was 0.9028. The daily 38.2% Fib levels comes at 0.9055, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9071, expected to provide resistance.

USD/CHF remains pressured around the intraday low of around 0.9020 heading into Wednesday’s European session. In doing so, the Swiss Franc (CHF) pair sellers approach the lower line of the two-month-old falling wedge bullish chart pattern.

It’s worth noting that the bearish MACD signals and an absence of oversold RSI (14) keep USD/CHF pair sellers hopeful of breaking the immediate support, namely the stated wedge’s lower line, around 0.8990 by the press time.

In a case where USD/CHF drops below 0.8990, the June 2021 low near 0.8925 holds the key to the quote’s further downside. A break that increases the odds of witnessing another fall towards a downward-sloping support line from early November 2022, around 0.8745 at the latest.

Alternatively, an upside clearance of the stated wedge’s top line, around 0.9100, confirms the bullish chart formation suggesting a theoretical target of around 0.9530.

During the run-up, the USD/CHF bulls need validation from the 100-DMA hurdle of near 0.9265.

Also acting as an upside filter is the previous monthly high of 0.9438.

Overall, USD/CHF remains on the bear’s radar while targeting a fresh 2023 low. However, the downside room appears limited unless the quote breaks 0.8925 mark.

Trend: Further downside expected

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9028 at the time of writing. Pair opened at 0.9033 and is trading with a change of -0.06 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.9162, 50 SMA 0.9231, 100 SMA @ 0.9267 and 200 SMA @ 0.9501.

The previous day high was 0.9098 while the previous day low was 0.9028. The daily 38.2% Fib levels comes at 0.9055, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9071, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9008, 0.8983, 0.8938
• Pivot resistance is noted at 0.9078, 0.9123, 0.9148

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