Technical Analysis – USDCHF takes hit, falls to monthly lows
October 20, 2023 12:29 pm
USDCHF plummets to one-month low
Short-term bias skewed to the downside
Sellers could next show up below 0.8890
USDCHF is set to finish the week with notable losses after Thursday’s session developed into a wild bearish ride, squeezing the price below the 0.8980 base and towards a one-month low of 0.8900.
The pair is currently trading muted near its Thursday’s low, waiting for its next directional signal. Technically, the ball is still on the bear’s side as the falling MACD has entered the negative region and the RSI keeps trending downwards below its 50 neutral mark. Yet, the market action is taking place around the lower Bollinger band and the Stochastic oscillator is approaching its recent lows in the oversold zone, feeding speculation that the sell-off could soon stabilize.
The 38.2% Fibonacci retracement of the 0.9437-0.8550 downleg is in short distance at 0.8890. If the bears jump underneath that border, the price might seek shelter around the 0.8835 barrier before it tumbles towards the 23.6% Fibonacci of 0.8760.
On the upside, the 50-day simple moving average (SMA) at 0.8955 could add some pressure, but the 0.8980-0.9030 area could be a tougher test. The bulls will need to lift that bar in order to revisit the 61.8% Fibonacci of 0.9100. A break higher could open the door for the 0.9200 ceiling.
In summary, the short-term risk for USDCHF remains cloudy, with sellers likely taking their next action below 0.8890.
USDCHF is set to finish the week with notable losses after Thursday’s session developed into a wild bearish ride, squeezing the price below the 0.8980 base and towards a one-month low of 0.8900.
The pair is currently trading muted near its Thursday’s low, waiting for its next directional signal. Technically, the ball is still on the bear’s side as the falling MACD has entered the negative region and the RSI keeps trending downwards below its 50 neutral mark. Yet, the market action is taking place around the lower Bollinger band and the Stochastic oscillator is approaching its recent lows in the oversold zone, feeding speculation that the sell-off could soon stabilize.
The 38.2% Fibonacci retracement of the 0.9437-0.8550 downleg is in short distance at 0.8890. If the bears jump underneath that border, the price might seek shelter around the 0.8835 barrier before it tumbles towards the 23.6% Fibonacci of 0.8760.
On the upside, the 50-day simple moving average (SMA) at 0.8955 could add some pressure, but the 0.8980-0.9030 area could be a tougher test. The bulls will need to lift that bar in order to revisit the 61.8% Fibonacci of 0.9100. A break higher could open the door for the 0.9200 ceiling.
In summary, the short-term risk for USDCHF remains cloudy, with sellers likely taking their next action below 0.8890.
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