Market news
29.08.2023, 02:06

USD/CHF Price Analysis: Bears eye 0.8790 support confluence and US CB Consumer Confidence

  • USD/CHF takes offers to extend Friday’s retreat from seven-week high to print two-day losing streak.
  • Upbeat oscillators, key support keeps Swiss Franc pair buyers hopeful despite latest U-turn from multi-month-old resistance line.
  • Convergence of 50-DMA, rising trend line from mid-July appears a tough nut to crack for bears.
  • US CB Consumer Confidence eyed for clear directions as Fed Powell’s speech highlighted data dependency for future policy moves.

USD/CHF remains on the back foot for the second consecutive day, down 0.12% intraday around 0.8825 amid the early Tuesday morning in Europe. In doing so, the Swiss Franc (CHF) pair stretches last week’s U-turn from a downward-sloping resistance line from March 08.

It’s worth noting that the broadly weaker US Dollar and the cautious mood ahead of the US Conference Board’s (CB) Consumer Confidence Index for August, expected at 116.2 versus the prior 117.00, exert downside pressure on the pair after it reversed from the key resistance line.

However, the upbeat RSI (14) line and the bullish MACD signals join the quote’s sustained trading beyond the 0.8790 support confluence to keep the buyers hopeful.

That said, the 50-DMA and a six-week-long rising trend line together constitute the 0.8790 hurdle toward the south.

In a case where the USD/CHF breaks the 0.8790 support, the odds of witnessing a quick slump towards refreshing the monthly low, currently around 0.8690, can’t be ruled out.

On the flip side, a clear upside break of the aforementioned multi-month-old resistance line, close to 0.8840 by the press time, needs validation from the monthly peak of 0.8865 and June’s low of 0.8901 to convince the USD/CHF pair buyers.

USD/CHF: Daily chart

Trend: Limited downside expected

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location