The USD/CHF is losing more than 50 pips on Tuesday ending a positive streak for the US Dollar. The pair printed a fresh two-day low at 0.9508 during the American session on the back of a decline of the DXY and a stronger Swiss Franc.

With the Swiss Franc (CHF) pair’s latest retreat, the quote portrays a bearish chart pattern, namely a rising wedge, on the four-hour play and teases the sellers to aim for the 250-pip downtrend in case the quote drops below 0.9550 support.

More weakness in USD/CHF would expose the critical short-term support at 0.9495/0.9500. On the upside, immediate resistance is seen at 0.9560 followed by the 0.9600 area.

The Swiss Franc gained momentum during the American session. The EUR/CHF cross broke below 0.9800 and dropped to 0.9762, hitting the lowest since November 16. The GBP/CHF turned negative hitting levels under 1.1300 and rose to the highest level in a week above 148.60.

However, the resistance-turned-support line from November 3, around 0.9475 by the press time, acts as an extra downside filter. Also likely to challenge the USD/CHF bears is the monthly low near 0.9355.

It’s worth noting that, the RSI retreat favors the pair’s latest pullback but the bullish MACD signals challenge the USDCHF bears.

Meanwhile, an upside clearance of the stated one-week-old rising wedge’s resistance line, near 0.9615 at the latest, defies the bearish formation and can propel the pair toward the 100-SMA hurdle of 0.9745.

Even so, the USD/CHF recovery remains elusive unless the quote stays below the 200-SMA level of 0.9860.

Even if the quote crosses the key SMA hurdle, the double tops around 1.0150 will be a crucial challenge for the USD/CHF bulls.

USDCHF Preparing for another impulse down

Nov 22 2022