USD/CHF Corrects Lower, 0.9300 Holds The Key
- USD/CHF struggled near 0.9475 and started a downside correction.
- It traded below a major bullish trend line with support at 0.9415 on the 4-hours chart.
- EUR/USD is attempting a steady recovery above 1.1850, GBP/USD failed to settle above 1.3900.
- Gold price is showing positive signs above $1,700 and $1,720.
USD/CHF Technical Analysis
This past week, the US Dollar broke the 0.9400 resistance against the Swiss Franc. However, USD/CHF faced resistance near 0.9475 and it recently started a downside correction.
Looking at the 4-hours chart, the pair traded as high as 0.9472 before starting a downside correction. There was a break below the 0.9450 and 0.9425 support levels. It even traded below a major bullish trend line with support at 0.9415.
There was a clear break below the 50% Fib retracement level of the upward move from the 0.9225 low to 0.9472 high. The next key support is near the 0.9300 level.
Any more losses might call for a test of the 0.9280 support. It is close to the 76.4% Fib retracement level of the upward move from the 0.9225 low to 0.9472 high. Conversely, the pair could stay above 0.9300 and start a fresh increase.
An immediate resistance is near the 0.9380 level. The main hurdle is now at 0.9400, above which the pair could rise steadily towards the 0.9475 level.
Overall, USD/CHF must stay above 0.9300 for a fresh increase. Looking at EUR/USD, both are showing positive signs, but facing hurdles near 1.1880 and 1.3920.
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- FOMC Meeting Minutes.