Technical Analysis – USDCHF held down by 23.6% Fibo
September 11, 2023 3:27 pm
USDCHF in a strong recovery mode from its 2023 low
Advance paused around 23.6% Fibo of 0.8928
Possibility of a fresh downleg in case of a rejection
USDCHF has been in a steady advance since its 2023 bottom of 0.8551, but the short-term rally seems to be running out of steam. The momentum indicators are also reflecting a loss of positive momentum, but the bulls have not surrendered yet.
If buying interest intensifies further, the price might face 0.8928, which is the 23.6% Fibonacci retracement of the 1.0146-0.8551 downleg. Higher, the 38.2% Fibo of 0.9161 may prove to be the next barrier for the bulls to overcome. A jump above the latter could then open the door for the 50.0% Fibo of 0.9349.
On the flipside, bearish actions may push the price lower towards the May bottom of 0.8819. Failing to halt there, the pair could descend towards the August low of 0.8689. Further declines might then come to a halt at the 2023 bottom of 0.8551, which is the lowest level observed since January 2015.
In a nutshell, USDCHF’s recovery has temporarily paused at the 23.6% Fibo of 0.8928. Hence, a failure to surpass that region could trigger another round of weakness for the pair.
USDCHF in a strong recovery mode from its 2023 low
Advance paused around 23.6% Fibo of 0.8928
Possibility of a fresh downleg in case of a rejection
USDCHF has been in a steady advance since its 2023 bottom of 0.8551, but the short-term rally seems to be running out of steam. The momentum indicators are also reflecting a loss of positive momentum, but the bulls have not surrendered yet.
If buying interest intensifies further, the price might face 0.8928, which is the 23.6% Fibonacci retracement of the 1.0146-0.8551 downleg. Higher, the 38.2% Fibo of 0.9161 may prove to be the next barrier for the bulls to overcome. A jump above the latter could then open the door for the 50.0% Fibo of 0.9349.
On the flipside, bearish actions may push the price lower towards the May bottom of 0.8819. Failing to halt there, the pair could descend towards the August low of 0.8689. Further declines might then come to a halt at the 2023 bottom of 0.8551, which is the lowest level observed since January 2015.
In a nutshell, USDCHF’s recovery has temporarily paused at the 23.6% Fibo of 0.8928. Hence, a failure to surpass that region could trigger another round of weakness for the pair.
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