FxNews—The USD/CHF currency pair is in a downtrend, trading at approximately 0.847, below the descending trendline and the 0.854 resistance. The 4-hour chart below demonstrates the price, trendlines, key support and resistance levels, and indicators utilized in today’s technical analysis.
USDCHF Technical Analysis – 13-September-2024
The currency pair’s price is above the 50- and 100-period simple moving averages. This development in the USD/CHF could result in a trend reversal from a bear market to a bull market.
- The stochastic oscillator has stepped down from overbought territory, meaning the market is no longer overbought.
- The RSI 14 clings to the median line, signaling a low momentum market.
- The Awesome oscillator bars are red, but the histogram is above the signal line, meaning the bears are adding bids to the market.
As for the harmonic pattern, a bearish ABCD pattern is formed in the 4-hour chart, which signals a bear market.
Zooming into the USD/CHF 1-hour chart, the price shifted below the Super trend indicator, signifying the downtrend should resume.
Overall, while the moving averages suggest the trend is bullish, other indicators, such as the Stochastic, Awesome oscillator, and Super trend, signal a sell. Furthermore, the bearish ABCD pattern also signals that the downtrend will likely resume.
USDCHF Forecast – 13-September-2024
The immediate resistance rests at 0.854, in conjunction with the descending trendline. The bear market is valid as long as the USD/CHF price is below 0.854. In this scenario, the bears will likely target 0.842 (the September 11 Low). Furthermore, if the selling pressure dips below 0.842, the cost can fall to 0.837.
Please note the bear market should be invalidated if the price exceeds the 0.854 resistance.
USDCHF Bullish Scenario – 13-September-2024
The critical barrier for the bulls lies at 0.854. The mild bullish wave that began at 0.837 will likely extend to 0.862 (August 14 Low) if the buyers close and stabilize the USD/CHF price above 0.854.
The 100-period simple moving average will be the primary support for the bullish scenario, and it should be invalidated if the price falls below the SMA.
USDCHF Support and Resistance Level – 13-September-2024
Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
- Support: 0.842 / 0.837
- Resistance: 0.854 / 0.862 / 0.874
Disclaimer: This technical analysis is for informational purposes only. Past performance is not necessarily indicative of future results. Foreign exchange trading carries significant risks and may not be suitable for all investors. Always conduct your research before making any investment decisions.