OctaFX | OctaFX Forex Broker
Open trading account

USD/CHF Price Analysis: 21-day SMA limits immediate downside

  • USD/CHF confronts 23.6% Fibonacci retracement following the bounce off 21-day SMA.
  • Early month lows add to the support while 38.2% Fibonacci retracement, 50-day SMA will challenge recovery moves.

USD/CHF takes the bids to 0.9707 during the pre-Europe session on Friday. In doing so, the pair repeats the tendency of staying beyond 21-day SMA while also confronting 23.6% Fibonacci retracement of its declines from November 29, 2019, to January 16, 2020.

The sustained trading above short-term SMA is likely to extend the pair’s pullback moves toward a 38.2% Fibonacci retracement level of 0.9770, following the clear break of 0.9820 mark comprising 23.6% of Fibonacci retracement.

However, a 50-day SMA level near 0.9781 and late-December 2019 top surrounding 0.9830 will challenge the buyers.

Alternatively, pair’s daily closing below 21-day SMA level of 0.9700 may recall early-month bottoms close to 0.9665 ahead of testing the monthly low of 0.9613.

USD/CHF daily chart

Trend: Trend: Pullback expected


Source: India's economic survey likely to forecast 2020/21 growth at 6%-6.5% - Reuters

Reuters quotes a source with the knowledge of the matter, saying that an economic survey, due to be announced by India’s Chief Economic Adviser Krishn
Read more Previous

US Dollar Index regains some poise, still below 98.00

The greenback is looking to regain some buying interest in levels just below the 98.00 mark when tracked by the US Dollar Index (DXY). US Dollar Index
Read more Next
Start livechat