Technical Analysis – USDCHF recovers after plunging towards 9-month trough
Posted on June 26, 2019 at 9:34 am GMT
Melina Deltas, XM Investment Research Desk
USDCHF posted a sharp bearish rally in the previous days, driving the pair towards a fresh nine-month trough near 0.9695. The technical indicators are hovering in oversold levels suggesting a potential upside retracement. The MACD remains below the trigger line, while the RSI is trying to jump above the 30 level.
Yet with the market action taking place well below moving averages, the pair may need extra time to correct the recent downtrend that started from the 1.0235 top.
A possible upside correction could send the market towards the 0.9850 resistance, identified by the inside swing bottom on June 5. Above this level and the red Tenkan-sen line, the next stop is coming from the lower surface of the Ichimoku cloud near 0.9880 and the 20-day simple moving average (SMA) currently at 0.9905.
A failure to return higher would put more faith to the bearish wave shifting the focus on the 0.9540 support barrier.
Briefly, USDCHF continues to hold a negative status both in the short and the medium-term.