- October 20, 2020
- Posted by: Analysis Team
- Category: Forex News
- USD/CHF remains on the back foot below 61.8% Fibonacci retracement of the late August-September upside.
- Lows marked since September 21 restricts the pair’s immediate downside.
- 200-bar SMA, a seven-week-old ascending trend line challenge the bulls.
USD/CHF sellers attack 0.9100 round-figures ahead of Tuesday’s European session. In doing so, the pair fades bounces off a one-month-long horizontal support zone while staying below the key Fibonacci retracement level.
Also favoring the bears is the sustained trading below 200-bar SMA and keeping the downside break of an upward sloping trend line since the September-start.
However, RSI conditions challenge the USD/CHF sellers, which in turn require them to break the 0.9090/85 support area before targeting the mid-September lows near 0.9050.
If the quote remains weak past-0.9050, August month’s bottom surrounding the 0.9000 psychological magnet will be the key.
Meanwhile, an upside clearance of 61.8% Fibonacci retracement level of 0.9115 will attack 50% Fibonacci retracement figures near 0.9150 and then the 200-bar SMA close to 0.9155. Though, any further rise past-0.9155 will be tamed by the previous support line, at 0.9175 now.
USD/CHF FOUR-HOUR CHART