USD/CHF Price Analysis – May 11
The USD/CHF is moving closer to the 9-day and 21-day moving averages to indicate the introduction of the bulls’ momentum. Meanwhile, should the bulls increase their momentum; the price may increase and may break up the resistance level of $0.903 to expose a $0.910 price level.
USD/CHF Long-term Trend: Bearish (Daily Chart)
Resistance Levels: $0.920, $0.925, $0.930
Support Levels: $0.885, $0.880, $0.875
USD/CHF is bearish on the long-term outlook. According to the daily chart, USD/CHF bulls manage to cross the $0.902 support-turned-resistance line as the price level around $0.905 and $0.910 will be the key to watch. Meanwhile, the pair’s fresh weakness will need to break the $0.9000 threshold before targeting the $0.8925-30 a four-month-old horizontal support zone. The price is currently targeting the resistance level of $0.904 and it may break it up provided the bulls’ momentum does not weak. However, in case the bulls’ momentum becomes weak, the price may consolidate before the bullish trend continues.
What to Expect from USD/CHF
USD/CHF is still trading below the 9-day and 21-day moving averages around the lower boundary of the channel. In case the support level of $0.900 holds, the price may reverse at the mentioned level and soar to the north. However, should the bears gain enough pressure to break down the support level of $0.895, the price could reach the support level of $0.885, $0.880, and $0.875 respectively as the technical indicator Relative Strength Index (14) remains below the 40-level.
Looking at it from the downside, USD/CHF is bearish on the long-term outlook and it has made a strong bearish move on the daily chart for more than one month. The bearish momentum increased in the last few weeks and the demand level of $0.898 was penetrated yesterday, the breakdown seems to be fake as the bulls quickly interrupted and a massive daily bullish candle produced a key resistance level of $0.900 today. This returned the price to retest the resistance level of $0.903 and if the price breaks up the level above the 9-day and 21-day moving averages, it could hit the potential resistance levels of $0.920, $0.925, and $0.930 respectively.
USD/CHF Medium-term Trend: Bearish (4H Chart)
On the 4-hour chart, USD/CHF is bearish. However, the currency pair may be having a fake breakdown at the support level of $0.903 and the bulls did not allow a further decrease in price. Meanwhile, a strong bullish candle could emerge and the price may remain above the 9-day and 21-day moving averages.
However, any bullish movement above $0.905 could reach the resistance level of $0.910 and above. On other hand, if the currency price slide below the 9-day and 21-day moving averages, this may open the door to the support levels of $0.898 and below. The Relative Strength Index (14) is below the 50-level with the signal line slightly bend down to indicate sell signal and a further reduction in price.