USD/CHF Price Forecast: Double top threatens 0.8220 support
The USD/CHF pair struggles at 0.8250 on Thursday, diving below the 0.8300 figure as a ‘double top’ chart pattern looms on the daily chart, even though the overall trend is up. At the time of writing, the pair trades at 0.8269, down almost 1%.
USD/CHF Price Forecast: Technical outlook
The uptrend remains intact, as the market structure of higher highs and higher lows holds so far. Nevertheless, USD/CHF failed to conquer 0.8400 on Wednesday, exacerbating the pair’s drop below 0.8300.
On the other hand, momentum is shifting in favor of sellers, as indicated by the Relative Strength Index (RSI), with the index trending lower and poised to turn bearish.
Nevertheless, if buyers push USD/CHF above 0.8300, this paves the way to challenge the 0.8350 psychological level ahead of the yearly high of 0.8395. Once those levels are taken out, it would open the door to challenge 0.8400.
On the flip side, if USD/CHF extends its loss below the October 2 low of 0.8227, it would confirm the ‘double top’ and open the door for a move towards the 50-day Simple Moving Average (SMA) of 0.8189. The next support is the 100-day SMA at 0.8116.
USD/CHF Price Chart – Daily
(This story was corrected on October 15 at 20:05 GMT to say in the first paragraph that USD/CHF struggles at 0.8250, not 0.8350.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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