50% Fibo. tests rebound from 100-day EMA below 0.9600
- USD/CHF climbs higher after reversing from the key EMA, horizontal support.
- The 50% Fibonacci retracement of January-May upside rally moves protects.
- The descending RSI line, the bearish MACD signals challenge the buyers, the eight-day-old resistance line adds to the upside filters.
USD/CHF holds on to yesterday’s bounce off the 100-day EMA around 0.9575 in Wednesday’s first Asian session. In doing so, the Swiss currency pair (CHF) comes up against the 50% Fibonacci retracement (Fibo.) of its rise from January to May.
Although the monthly horizontal support near 0.9520-45 adds strength to the bearish filters, the descending RSI line (14), not oversold, joins the bearish signals of the MACD to hint at the difficulties of the buyer of the USD/CHF pair.
That said, a weekly resistance line near 0.9620 also defies the short-term rally in USD/CHF, barring the 50% Fibo. level of 0.9578.
Even if the quote breaks above 0.9620, the round figure of 0.9700 and multiple hurdles surrounding 0.9715 may test bulls before giving them control.
On the contrary, a break down of the support at 0.9520 could lead USD/CHF sellers towards the 61.8% Fibonacci retracement level near 0.9465.
Following this, the 200-day EMA level of 0.9430 will challenge the pair’s further decline, a break of which will not hesitate to lead the quote to the January high near 0.9345.
USD/CHF: daily chart
Trend: limited increase expected