#USDCHF @ 0.88586 may be headed for an upward correction despite touching new lows. (Pivot Orderbook analysis)

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• USD/CHF may be headed for an upward correction despite touching new lows.
• If buyers reclaim the 20-Day EMA at 0.8955, further upside is expected in the USD/CHF pair.
• USD/CHF at a brisk of falling towards 0.8800, once it falls beneath 0.8819.

The pair currently trades last at 0.88586.

The previous day high was 0.8932 while the previous day low was 0.8833. The daily 38.2% Fib levels comes at 0.8871, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8894, expected to provide resistance.

The Swiss Franc (CHF) strengthened to a new high of the year against the US Dollar (USD), as the USD/CHF dropped towards 0.8819, the year-to-date (YTD) low, as risk aversion hit the markets. Nevertheless, the USD shrugged off its earlier losses, and the USD/CHF pair reversed its course, holding gains. At the time of writing, the USD/CHF is trading at 0.8858 and has gained 0.20%.

Although the pair touched new lows, and the USD/CHF price action fell to a lower low, technically speaking, the USD/CHF might be headed for an upward correction. The Relative Strength Index (RSI) indicator is in bearish territory, though it has printed a series of successive higher troughs on each USD/CHF’s lower low. Therefore, a positive divergence is emerging, which could pave the way for further upside.

For that outcome to happen, USD/CHF buyers must reclaim the 20-day EMA at 0.8955. Once cleared, the pair must rally above the May 2 high, at around 0.9000. A decisive break of the figure would expose another resistance level at the 50-day EMA at 0.9067 before buyers can claim 0.9100.

Conversely, if USD/CHF collapses below 0.8819, a fall towards 0.8800 is on the cards.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.8858 at the time of writing. Pair opened at 0.8838 and is trading with a change of 0.23 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.8955, 50 SMA 0.9136, 100 SMA @ 0.9192 and 200 SMA @ 0.9437.

The previous day high was 0.8932 while the previous day low was 0.8833. The daily 38.2% Fib levels comes at 0.8871, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8894, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8803, 0.8769, 0.8704
• Pivot resistance is noted at 0.8902, 0.8967, 0.9001

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