USD/CHF technical analysis: 4H 100MA, 2-week-old support-zone limit immediate declines
- USD/CHF extends Thursday’s downpour, nears short-term key supports.
- An upside break of 0.9985 could recall June month highs.
Given the failure to rise past-0.9980/85 area, USD/CHF carries the previous day’s declines while trading around 0.9913 ahead of the Europe markets open on Friday.
The bearish signal from 12-bar moving average convergence and divergence (MACD) indicates brighter chances of pair’s further declines to 100-bar moving average on the four-hour chart, at 0.9900 now, followed by a two-week-old rising trend-line near 0.9890.
Should sellers refrain from respecting immediate support-line, 38.2% Fibonacci retracement of August-September upside, at 0.9860, and a month-long ascending trend-line close to 0.9835 will be on the bears’ radar.
Alternatively, 0.9950 and 0.9980/85 holds the key to pair’s rally towards early-June tops surrounding 1.0020, adjacent to mid-May bottoms nearing 1.0050.
USD/CHF 4-hour chart
Trend: pullback expected