USD/CHF has been bearish since March, as the USD started to resume the larger bearish trend on the banking crisis. This pair has lost around 600 pips
USD/CHF has been bearish since March, as the USD started to resume the larger bearish trend on the banking crisis. This pair has lost around 600 pips from the top back then, and the highs continue to get lower, which shows that the pressure remains to the downside. Inflation is lower in Switzerland which benefits the CHF, and besides that, the Swiss Franc was also attracting demand as a safe haven during the banking crisis which is not over yet.
In early March the 100 SMA (green) was acting as resistance on the H4 chart, but then the 50 SMA (yellow) took over as the pace accelerated. Last week the price fell to 0.8860 which was retested this week and yesterday sellers pushed USD/CHF a few pips below that level as the US hit an air pocket. But buyers came back and closed that candlestick as an upside-down pin, which is a bullish reversing signal after the decline. The price continued to crawl higher slowly, but the 50 SMA stands above ready to stop the climb.
USD/CHF pierced below the double support level yesterday but couldn’t continue further down. This caused some traders who bet that the price would continue to drop the shorts and sent the price back up. However, the price is now approaching the 50 SMA now, which could determine whether the sellers (those betting on the price reversing down) will be successful or not.
If the price stays below this moving average, it could be good news for the sellers, but if it goes above it with more momentum, it could cause a sudden jump due to the previous failed attempt to break above the 50 SMA. So, traders should keep an eye on this moving average for clues about what might happen next. We are following the price action and might open a sell USD/CHF signal.ill the downtrend continue?
USD/CHF
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