USD/CHF Price Analysis: Sellers challenge 21-day SMA near 0.9250

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  • USD/CHF prints mild gains following a retreat from 0.9300 on Thursday.
  • The pair is in a continuous uptrend since August 30.
  • MACD trades holds onto the overbought zone with receding upside momentum.

USD/CHF trades cautiously on Thursday in the initial Asian trading hours. The pair confides in a narrow trade band of less than 10-pips movement.  At the time of writing, USD/CHF is trading at 0.9278, up 0.05% for the day.

USD/CHF daily chart

On the daily chart, after testing the five-month high near 0.9368, the USD/CHF pair failed to preserve the momentum and touched the intraday low of 0.9230 this Monday, which also coincides with the ascending trendline. The ascending trendline extends from the low of 0.9101 on August 30. Now, the pair is hovering in a limiting trading range. The sluggish price movement in today’s session suggests that bulls find it difficult to move in an upward direction. 

Having said that, if the price sustains below the intraday low, it could immediately test the 21-day Simple Moving Average (SMA) at 0.9258. The Moving Average Convergence Divergence (MACD) trades in the overbought zone with stretched buying conditions. Any downtick in the MACD would amplify the selling opportunities in the pair. The bears could test the 0.9220 horizontal support level, followed by the low made on September 15 at 0.9163.

Alternatively, if the price starts moving higher it could move back to the psychological 0.9300 level. A daily close above 0.9300 could bring the possibility of meeting the 0.9320 horizontal resistance level for USD/CHF bulls followed by a September high (September 30)  at 0.9368.

USD/CHF additional levels