Technical Analysis – USDCHF battles with 200-SMA as advance pauses
January 31, 2023 3:25 pm
USDCHF has been in an uptrend since mid-January when the price found strong support at the 17-month low of 0.9084. However, this latest rebound seems to have temporarily paused in the four-hour chart, with the 200-period simple moving average (SMA) acting as a tough barricade.
The short-term oscillators are also indicating this loss of positive momentum. The MACD histogram is softening but remains above both zero and its red signal line, while the RSI points downwards above its 50-neutral mark.
If buyers regain the upper hand, initial resistance could be met at the recent peak of 0.9287. Surpassing this region, the price may ascend towards 0.9316 before the attention shifts to the 0.9359 barrier. A break above the latter could pave the way for the 2023 high of 0.9406.
Alternatively, should the latest weakness persist, the 0.9220 region could act as the first line of defense. Lower, further price declines could then come to a halt at the 0.9181 support. Failing to halt there, the 0.9157 region might provide further downside protection.
Overall, USDCHF’s attempt for recovery appears to be running out of juice near the 200-period SMA. Therefore, a clear close above that zonecould validate the resumption of the pair’s upside trajectory.
USDCHF has been in an uptrend since mid-January when the price found strong support at the 17-month low of 0.9084. However, this latest rebound seems to have temporarily paused in the four-hour chart, with the 200-period simple moving average (SMA) acting as a tough barricade.
The short-term oscillators are also indicating this loss of positive momentum. The MACD histogram is softening but remains above both zero and its red signal line, while the RSI points downwards above its 50-neutral mark.
If buyers regain the upper hand, initial resistance could be met at the recent peak of 0.9287. Surpassing this region, the price may ascend towards 0.9316 before the attention shifts to the 0.9359 barrier. A break above the latter could pave the way for the 2023 high of 0.9406.
Alternatively, should the latest weakness persist, the 0.9220 region could act as the first line of defense. Lower, further price declines could then come to a halt at the 0.9181 support. Failing to halt there, the 0.9157 region might provide further downside protection.
Overall, USDCHF’s attempt for recovery appears to be running out of juice near the 200-period SMA. Therefore, a clear close above that zone could validate the resumption of the pair’s upside trajectory.
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