- The USD/CHF pair stalled its recent recovery from multi-month lows and started retreating from the very important 200-day SMA, snapping three consecutive days of winning streak.
- The intraday slide showed some resilience below 200-hour SMA and managed to find some support near a short-term ascending trend-line, extending from weekly lows set on Monday.
- The mentioned trend-line support, currently near the 0.9920-15 region, might now act as a key pivotal for short-term traders and determine the pair’s next leg of a directional move.
Given the pair’s inability to make it through an important technical resistance, the fact that technical indicators on the daily chart haven’t been able to recover from the bearish territory clearly suggests that the near-term bearish pressure might still be far from over.
Moreover, oscillators on hourly charts have been losing positive momentum and further add credence to eh bearish outlook, albeit traders are likely to wait for a convincing break below the mentioned support before positioning for any further near-term depreciating move.
A convincing break through now seems to accelerate the slide should pave the way for an extension of the pair’s recent bearish trajectory. On the flip side, a sustained move beyond the 200-DMA barrier might negate the negative outlook and trigger a short-covering bounce.
USD/CHF 1-hourly chart