Usdchf Trades Above Support

 Usdchf Trades Above Support

Usd/Chf Trades Above 0.8500 Support On Weak Momentum

It's the 2nd day in a row for the USD/CHF to remain negative as it trades near the 0.85 support zone. The USD/CHF has been under pressure as the investors are now glued to the upcoming CPI and potential rate cuts.

The RSI indicator on USD/CHF shows that the dominant market force is bearish, and the RSI prints under 50. In addition, the MACD reading is still under the middle line, which means the momentum will remain weak.

Usd/Chf Trades Need To Watch 0.8450 Support

If things stay like this, the USD/CHF has a much higher risk of dropping under the 0.85 support zone. This will send the pair toward the 0.8460 - 0.8450 support zone. A break of even these levels will send the USD buyers towards the next support present near 0.84.

If we look at the upside, the next level that the USD/CHF traders need to watch is 0.8547. That's the level where the 21 EMA is also present, which makes it even more critical. Once the 0.8547 hurdle is cleared, the USD/CHF will have a straight road towards the 0.86 handle.

On the USD/CHF daily chart, the S1 pivot point is at 0.8502. A more robust support (S2) can be seen near 0.8491, which could serve as a base for the USD/CHF.

On the other hand, the daily R1 for the USD/CHF is located at 0.853, followed by R2 at 0.8547. Once the USD/CHF bulls cross the R1 and R2, the next hurdle (R3) will be near the 0.8558.

Once the USD/CHF touches 0.8558, the chances of an intraday reversal will increase, as that's the last resistance zone on the daily chart.

The current sentiment of the USD/CHF indicates that the greenback is in trouble against the CHF (Swiss Franc). The CHF also benefits from a bullish EUR as the market players look forward to the following high volatility events.

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