Technical Analysis – USDCHF in bullish corrective mode; eyes on 0.8700
July 25, 2023 2:25 pm
USDCHF rotated northwards after its latest, almost vertical, downfall halted at the bottom line of the broad bearish channel at 0.8554.
The price is currently flirting with the 0.8700 round-level as the stochastic oscillator is pointing to overbought conditions, increasing the risk for a downside correction. The RSI is still some distance below its 50 neutral mark, but its positive trajectory suggests buying appetite is improving. The soft positive momentum in the MACD is backing this narrative too.
If the 0.8700 bar gives way, the recovery could expand towards the 2021 low of 0.8755. The 20-day simple moving average (SMA) is converging to the same point. Hence, a decisive close higher could be the key for an advance towards the previous low of 0.8819 and the 0.8855 support area. If the bulls cross above the 50-day SMA too, the spotlight will shift back to the crucial ceiling of 0.8980.
Otherwise, a pullback below 0.8700 might initially retest yesterday’s low around 0.8640 before targeting the channel’s lower boundary seen at 0.8560. If sellers dominate below 0.8500, the pair could suffer an aggressive downfall to 0.8360, where the Q1 2015 uptrend started.
Summing up, USDCHF may remain attractive to buyers in the short-term. An extension above 0.8700 could renew upside pressures.
USDCHF rotated northwards after its latest, almost vertical, downfall halted at the bottom line of the broad bearish channel at 0.8554.
The price is currently flirting with the 0.8700 round-level as the stochastic oscillator is pointing to overbought conditions, increasing the risk for a downside correction. The RSI is still some distance below its 50 neutral mark, but its positive trajectory suggests buying appetite is improving. The soft positive momentum in the MACD is backing this narrative too.
If the 0.8700 bar gives way, the recovery could expand towards the 2021 low of 0.8755. The 20-day simple moving average (SMA) is converging to the same point. Hence, a decisive close higher could be the key for an advance towards the previous low of 0.8819 and the 0.8855 support area. If the bulls cross above the 50-day SMA too, the spotlight will shift back to the crucial ceiling of 0.8980.
Otherwise, a pullback below 0.8700 might initially retest yesterday’s low around 0.8640 before targeting the channel’s lower boundary seen at 0.8560. If sellers dominate below 0.8500, the pair could suffer an aggressive downfall to 0.8360, where the Q1 2015 uptrend started.
Summing up, USDCHF may remain attractive to buyers in the short-term. An extension above 0.8700 could renew upside pressures.
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