USDCHF is recouping some of today’s losses after it plummeted to an almost five-year low of 0.9182. The price has turned its short-term bias from neutral to strongly negative after the downfall from the 0.9630 area. The RSI appears to be turning slightly to the upside in the oversold zone, however, the MACD is suggesting even more losses.
The 23.6% Fibonacci retracement level of the downward movement from 1.0235 to 0.9182 at 0.9430 is the nearest resistance that could reject any attempt higher. If not and the price extends positive momentum, 0.9540 could take over ahead of the 38.2% Fibonacci of 0.9585.
On the flip side, another downside run, below the 0.9185 support could bring the 0.9070 level back into view, registered on April 2015. Should it fail to hold, the 0.9000 psychological number would be the next crucial target.
In brief, USDCHF is facing downside pressure but is expected to pause the south run, while in the medium-term selling interest could continue as the market confirms a bearish cross between the 20- and 40-simple moving averages (SMAs).
