Technical Analysis – USDCHF pulls back from 23.6% Fibo; retains bearish view
October 15, 2020 8:25 am
USDCHF held in loses for the fourth week in a row, dropping below the 23.6% Fibonacci retracement level of the down leg from 0.9295 to 0.9084 at 0.9135.
The RSI in the four-hour chart continues to miss direction around the 50 level, while the red Tenkan-sen jumped above the blue Kijun-sen line, increasing chances for a meaningful recovery in the short-term trading. Also, the stochastic oscillator completed a bullish crossover within the %K and %D lines above the 20 level.
However, should the price close comfortably above the 23.6% Fibonacci and the descending trend line, which has been unbreakable over the past month, traders could add more value to the pair, pushing the market up to 0.9160 and the 38.2% Fibonacci of 0.9165. The 50.0% Fibonacci of 0.9190 and the 0.9196 resistances have been strong level as well before touching the 61.8% Fibonacci of 0.9215.
In the negative scenario, a slip below the 20-period SMA the market could retest the 0.9084 and the 0.9074 lines. Even lower, investors could shift attention to the 0.9047, continuing the bearish structure in the short-term.
In brief, USDCHF is in a negative mode in the short-term timeframe and neutral-to-bearish in the bigger picture.
USDCHF held in loses for the fourth week in a row, dropping below the 23.6% Fibonacci retracement level of the down leg from 0.9295 to 0.9084 at 0.9135.
The RSI in the four-hour chart continues to miss direction around the 50 level, while the red Tenkan-sen jumped above the blue Kijun-sen line, increasing chances for a meaningful recovery in the short-term trading. Also, the stochastic oscillator completed a bullish crossover within the %K and %D lines above the 20 level.
However, should the price close comfortably above the 23.6% Fibonacci and the descending trend line, which has been unbreakable over the past month, traders could add more value to the pair, pushing the market up to 0.9160 and the 38.2% Fibonacci of 0.9165. The 50.0% Fibonacci of 0.9190 and the 0.9196 resistances have been strong level as well before touching the 61.8% Fibonacci of 0.9215.
In the negative scenario, a slip below the 20-period SMA the market could retest the 0.9084 and the 0.9074 lines. Even lower, investors could shift attention to the 0.9047, continuing the bearish structure in the short-term.
In brief, USDCHF is in a negative mode in the short-term timeframe and neutral-to-bearish in the bigger picture.
The post Technical Analysis – USDCHF pulls back from 23.6% Fibo; retains bearish view first appeared on XM.
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