Moving Average and Fibonacci exposing key levels in the USDCHF

Mark O'Donnellon 22/07/2022|
2 min read

The USDCHF pair has been swinging from bullish to bearish from a weekly perspective on this pair.  

It has established strong resistances at 1.00571 to 1.00148, forming a double top as it tried to break  these levels. The double top rejection resulted in the USDCHF pushing back down and bouncing off  0.94907. This price level corresponds to the 200 MA and the 0.5 fib level. 

USDCHF 1W, with 50, 100, 200 Moving Average 

From the perspective of the daily time frame, the USDCHF pair recently met a resistance around 0.974.  At this point the 50 Moving Average signaled traders to possible further downwards movement of the  pair.  

A key level to watch out for is 0.95959 or around the 100 MA. This level needs to hold for the price to  move upwards and possibly test the resistance again. If this level doesn’t hold, the price could  potentially reach the fib’s golden pocket of 0.618 around 0.93568 and the weekly 50 MA. If the price still 

goes further down the price could reach and test the 200 MA. Further afield, if the price smashes  through all these supports, there could be a possible test of support around 0.883. 

The overall market sentiment for USDCHF is still bearish, as it has been since the start of April. Market  participants might expect further downside on the pair possibly even down to 0.883 support. Traders  who choose to take a position and trade USDCHF should watch out for the levels mentioned above and  position themselves wisely. Shorting the top or near the top of relief pumps might be a safer trade than  taking longs on supports in hopes of a relief pump.