USD/CHF slid during the European morning Friday after it hit resistance near the crossroads of the 0.9890 level and the prior upside support line taken from the low of the 16th of February. Bearing in mind that the pair is trading below that line, we would consider the short-term outlook to be negative for now.
However, we would like to see a clear dip below 0.9815 before we get confident on more bearish extensions. Such a break would confirm a forthcoming lower low on the 4-hour chart and could set the stage for our next support zone of 0.9765. If that barrier fails to stop the price from dropping further, then we may see sellers aiming for the 0.9735 line.
Looking at our short-term oscillators, we see that the RSI turned down after it hit its 50 line, while the MACD, already negative, has turned south as well and just touched its toe below its trigger line. These indicators detect negative momentum and support the case for USD/CHF to continue drifting lower for a while more.
On the upside, we would like to see a move back above the aforementioned upside support line before we abandon the bearish case. Something like that is likely to initially aim for the 0.9935 resistance level, the break of which could see scope for extensions towards the 0.9980 obstacle, defined by the peaks of the 23rd and 29th of May.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Brokers, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Brokers analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyzes and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyzes and must therefore be viewed by the reader as marketing information. JFD Brokers prohibits the duplication or publication without explicit approval.
FX and CFDs are leveraged products. They are not suitable for every investor, as they carry high risk of losing your capital. You should be aware of all the risks associated with trading on margin. Please read the full Risk Disclosure.