Forex Technical Update

Previous: A Look at the USD/CHF Clinging on Strength (11/29)



USD/CHF has been trading above the 55SMA in the 4H chart since the beginning of Nov. 4. Also the RSI reading in this chart has been staying above 40 in November as well and has been able to tag 70. 11/30 price action pushed below the 4H 55-period simple moving average (SMA), and pushed the RSI below 40. 12/1 European session price action also confirmed the bearish outlook after the market came up to test 0.9150 pivot area and respected it as resistance.

The USD/CHF is thus either anchoring into a range-bound market, or a sharper correction decline.For now, the 38.2% retracement is near-term target at 0.9038. However, the market can easily extend to 0.90, where the 200 SMA resides in the 4H chart.

The next support is 50% retracement at 0.8950, reinforced by a pivot near 11/11. The preceding trend has been bullish, so the maximum bearish outlook at the momentum should be the 61.8% retracement at 0.8858.

 Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.