USDCHF improved recently in an established negative structure and is tackling the 0.9457 level, that being the 61.8% Fibonacci retracement of the up leg from 0.9182 to 0.9900. Further backing the negative picture are the declining simple moving averages (SMAs).
However, in spite of the prevailing negative charge within the Ichimoku lines, they reflect a stall in the descent, while the short-term oscillators signify strengthening positive sentiment. The MACD, in the negative region, has pushed above its red signal line, while the rising RSI nears the 50 mark. Additionally, the bullish stochastic oscillator is currently promoting advances as it heads to the 80 level.
To the upside, immediate constrictions may stem from the 61.8% Fibo of 0.9457, where the steadied blue Kijun-sen also lies. Moving higher, a diagonal shift towards the cloud may encounter sturdy resistance from the region of 0.9531-0.9553, which includes the 50.0% Fibo of 0.9540 and the 50-day SMA. Overtaking this heavy border, the pair may test the cloud’s upper surface, which overlaps with the 100-period SMA at 0.9592. Another run higher may meet the 38.2% Fibo of 0.9626 ahead of the 0.9650 high. Failing to deny further advances, the 200-day SMA at 0.9700 and the 23.6% Fibo of 0.9731 overhead may take a crack at it.
Should sellers direct lower, support may form at the horizontal red Tenkan-sen line at 0.9415 ahead of the low of 0.9362. Steeper declines may rest at the 0.9320 trough before negative pressures plunge the pair towards the 0.9288 barrier.
Summarizing, the predominant direction is negative below the SMAs and the 0.9531 high and a break below 0.9362 may confirm this view in the short-term timeframe.
