USD/CHF reversed its course after hitting a weekly high of 0.9003 and fell, as the sellers remain committed to defending the 0.9000 figure. After consolidating for back-to-back days in the 0.8950-0.9000 range, the USD/CHF exchanges hands at 0.8933, down 0.45%.

USD/CHF is testing the signal lines of the indicator. The instrument is going below the Ichimoku Cloud, which suggests a downtrend. A test of the lower border of the Cloud at 0.8950 is expected, followed by falling to 0.8765. An additional signal confirming the decline will be a rebound from the upper border of the descending channel. The scenario can be cancelled by a breakout of the upper border of the Cloud and securing above 0.9025, which will mean further growth to 0.9115.

The USD/CHF posted two positive days and remained in the front foot during the week before turning negative. Sellers are gathering momentum, as shown by the Relative Strength Index (RSI), which is stills in bearish territory. In addition, the Rate of Change (RoC) also turned bearish, suggesting that the USD/CHF pair could resume its downward bias.

If USD/CHF continues lower, the next support would be the April 14 daily low at 0.8866. Once broken, up next would be the YTD low at 0.8859, followed by the 0.8800 figure.

On the other hand, the USD/CHF first resistance would be the confluence of a one-month-old downslope trendline around 0.8990, followed by the 0.9000 figure. A breach of the latter, the USD/CHF can rally towards the 20-day Exponential Moving Average (EMA) at 0.9044 before aiming towards April 10 daily high at 0.9120.

USDCHF to stay bearish until the break of TL above

Apr 23 2023

Stop Loss -0.95%

Holding time 23d12hr

0.89211

Entry price

0.90062

Stop loss price