#USDCHF @ 0.88975 stays pressured after reversing from one-week high the previous day., @nehcap view: Further downside expected (Pivot Orderbook analysis)

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• USD/CHF stays pressured after reversing from one-week high the previous day.
• Failure to cross 100-EMA, easing bullish bias of MACD lures Swiss Franc buyers inside bearish megaphone formation.
• Two-month-old previous resistance line lures intraday sellers; bulls need 200-EMA breakout to convince markets.

The pair currently trades last at 0.88975.

The previous day high was 0.8912 while the previous day low was 0.8868. The daily 38.2% Fib levels comes at 0.8885, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8895, expected to provide support.

USD/CHF remains depressed below 0.8900, down for the second consecutive day, as it retreats from the 200-EMA hurdle heading into Tuesday’s European session.

Apart from taking a U-turn from the 200-Exponential Moving Average (EMA), the easing bullish bias of the MACD and the pair’s sustained trading within a three-week-old bearish megaphone trend-widening chart pattern also keeps the USD/CHF sellers hopeful.

That said, the Swiss Franc (CHF) pair bears may initially aim for the previous resistance line from March 08, now immediate support near 0.8840.

Following that, the stated megaphone’s bottom line, around 0.8810 at the latest, quickly followed by the 0.8800 round figure, can test the USD/CHF bears.

On the flip side, USD/CHF pair’s rebound can challenge the 100-EMA hurdle of surrounding 0.8930.

In a case where the Swiss Franc (CHF) sellers manage to keep the reins past 0.8930, the stated megaphone’s top line and the 200-EMA, respectively near 0.8980 and the 0.9000 round figure, can act as the last defense of the USD/CHF bears.

Should the USD/CHF buyers manage to hold the line after 0.9000, the mid-March low and the previous monthly high, around 0.9070 and 0.9200 in that order, should gain their attention.

Overall, USD/CHF is likely to remain pressured but the downside room appears limited.

Trend: Further downside expected

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.8892 at the time of writing. Pair opened at 0.8895 and is trading with a change of -0.03% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.8929, 50 SMA 0.9107, 100 SMA @ 0.918 and 200 SMA @ 0.9428.

The previous day high was 0.8912 while the previous day low was 0.8868. The daily 38.2% Fib levels comes at 0.8885, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8895, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8871, 0.8847, 0.8827
• Pivot resistance is noted at 0.8916, 0.8936, 0.896

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