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Will USD/CHF Continue to Slide?

January 12, 2022

  • USD/CHF started to climb after testing support near 0.9100.
  • Bullish trend line formed support near 0.9230.

The US Dollar, Swiss Franc pair tested support near 0.9100 before turning bullish. The quote tested resistance near 0.9280 before correcting lower.

USD/CHF 4-Hour Chart (Trend: BULLISH)

 

On the 4-hour chart, the USD/CHF broke above the 0.9140 and 0.9180 resistance levels, and both the 100-MA (red) and 200-MA (blue). It even tested resistance near 0.9280 before correcting lower. The quote is currently testing the 0.9240 support level, which is also near the 23.6% Fibonacci retracement level of the upward move from the swing low of 0.9102 to the swing high of 0.9278.

For the pair to continue bullish, support at 0.9240 will need to hold. Next the quote will need to break above the 0.9260 and 0.9280 resistance levels. Above this there is further resistance near 0.9300. A break above this level could see momentum build, taking the quote up towards 0.9360, a level last seen on November 25th, 2021.

In contrast, if the pair turns bearish, the quote will first need to break below support at 0.9230 and the bullish trend line. Below this there is further support near 0.9210 and the 38.2% Fibonacci retracement level (of the 0.9102 low to the 0.9278 high). The next levels to test will be the 100-MA (red) and 200-MA (blue), the 50% Fibonacci retracement level (of the 0.9102 low to the 0.9278 high) and the 0.9180 support level. If the quote can break below each of these, momentum could drive the pair back down towards support at 0.9100. 

 

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