USD/CHF Price Analysis: Retreats towards 0.9550 inside weekly rising wedge
- USD/CHF takes offers to refresh intraday low, snaps six-day uptrend.
- Rising wedge bearish chart pattern suggests 250-pips of downtrend on breaking 0.9550.
- Fortnight-old previous resistance line adds to the downside filters.
- Key SMAs challenge buyers before the double tops surrounding 1.0150.
USD/CHF renews intraday low near 0.9570 as bears sneak in after a six-day absence during early Tuesday.
With the Swiss Franc (CHF) pair’s latest retreat, the quote portrays a bearish chart pattern, namely a rising wedge, on the four-hour play and teases the sellers to aim for the 250-pip downtrend in case the quote drops below 0.9550 support.
However, the resistance-turned-support line from November 3, around 0.9475 by the press time, acts as an extra downside filter. Also likely to challenge the USD/CHF bears is the monthly low near 0.9355.
It’s worth noting that, the RSI retreat favors the pair’s latest pullback but the bullish MACD signals challenge the USDCHF bears.
Meanwhile, an upside clearance of the stated one-week-old rising wedge’s resistance line, near 0.9615 at the latest, defies the bearish formation and can propel the pair toward the 100-SMA hurdle of 0.9745.
Even so, the USD/CHF recovery remains elusive unless the quote stays below the 200-SMA level of 0.9860.
Even if the quote crosses the key SMA hurdle, the double tops around 1.0150 will be a crucial challenge for the USD/CHF bulls.
USD/CHF: Four-hour chart
Trend: Limited downside expected