Key Highlights
- USD/CHF declined heavily below the 0.8700 support and tested 0.8430.
- A major bearish trend line is forming with resistance at 0.8600 on the 4-hour chart.
- Bitcoin started a recovery wave from the $48,500 zone.
- Gold corrected gains and might revisit the $2,350 support.
USD/CHF Technical Analysis
The US Dollar started a major decline from well above 0.8850 against the Swiss Franc. USD/CHF traded below 0.8700 and 0.8650 to enter a bearish zone.
Looking at the 4-hour chart, the pair settled below the 0.8600 level, the 200 simple moving average (green, 4-hour), and the 100 simple moving average (red, 4-hour). It even crashed below the 0.8500 level.
A low was formed near 0.8432 before the pair started a recovery wave. There was a move above the 0.8500 level. The pair tested the 23.6% Fib retracement of the downward move from the 0.8875 swing high to the 0.8432 low.
Immediate resistance sits near the 0.8585 level. The next resistance sits at 0.8600. There is also a major bearish trend line forming with resistance at 0.8600 on the same chart.
A clear move above 0.8600 could open the door to more gains. In the stated case, the pair could rise and test 0.8650, and the 50% Fib retracement of the downward move from the 0.8875 swing high to the 0.8432 low.
Immediate support is near the 0.8480 level. The next major support is near the 0.8440 level. A downside break and close below the 0.8440 support zone could open the doors for more losses. In the stated case, USD/CHF might decline toward the 0.8400 level.
Looking at Bitcoin, the price started a recovery wave above the $53,500 level but faces many hurdles near $56,500 and $58,000.
Economic Releases
- EIA Crude Oil Stocks Change – Forecast 0.85M, versus -3.436M previous.
