The USDCHF currency pair is under significant strain as it takes a negative cue from the USD Index.

…
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 is facing immense pressure after seeking a weak lead from the USD Index.

The pair currently trades last at 0.89680.

The previous day high was 0.8998 while the previous day low was 0.8951. The daily 38.2% Fib levels comes at 0.8969, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.898, expected to provide resistance.

The USD/CHF pair is looking vulnerable near the immediate support of 0.8950 in the London session. The Swiss Franc asset is under severe pressure as the US Dollar Index (DXY) is struggling to find support. The USD Index is facing a sell-off as investors despite the Federal Reserve (Fed) are preparing for restarting its policy-tightening regime.

S&P500 futures have remained choppy overnight, portraying a flat opening ahead. Investors will remain on the tenterhooks ahead of the second-quarter result season and the Nonfarm Payrolls (NFP) data. The 10-year US Treasury yields have jumped to near 4.07%.

Meanwhile, Swiss National Bank (SNB) governing board member, Andrea Maechler, commented “It cannot be ruled out that we will need to further hike interest rates.”

USD/CHF is on the verge of delivering a breakdown of the Ascending Triangle chart pattern on a four-hour scale. The upward-sloping trendline of the aforementioned pattern is plotted from June 22 low at 0.8907 while the horizontal resistance is placed from June 23 high at 0.9013.

The 200-period Exponential Moving Average (EMA) at 0.8987 is acting as a critical barrier for the US Dollar bulls.

The Relative Strength Index (RSI) (14) is oscillating in the 40.00-60.00 range, indicating a sideways performance.

A breakdown below June 30 low at 0.8935 would expose the Swiss Franc asset to May 12 low around 0.8900, followed by April 13 low at 0.8860.

Alternatively, an upside move above the psychological resistance of 0.9000 would fade the bearish bias and will drive the asset toward June 06 low at 0.9033 and May 30 high at 0.9084.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.8956 at the time of writing. Pair opened at 0.8952 and is trading with a change of 0.04 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.8976, 50 SMA 0.8985, 100 SMA @ 0.9074 and 200 SMA @ 0.9287.

The previous day high was 0.8998 while the previous day low was 0.8951. The daily 38.2% Fib levels comes at 0.8969, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.898, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8936, 0.892, 0.8889
• Pivot resistance is noted at 0.8983, 0.9014, 0.903

[/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