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USDCHF, Fibonacci Analysis

11/8/2022 1:43 PM


On the daily chart, the USD/CHF pair reached annual highs around 1.0145, after which it corrected downwards to the 38.2% ascending fan line near the 0.9875 mark. For further decline, quotes need to consolidate below the level of 0.9855 (38.2% retracement), in this case, the targets will be the levels 0.9770 (50.0% retracement) and 0.9685 (61.8% retracement). In case of a breakout of 0.9960 (23.6% retracement) and the middle line of the Bollinger Bands, the price will be able to return to the area of 1.0130 (0.0% retracement).

Technical indicators point out the possibility of further decline: the Bollinger Bands are reversing horizontally after the upward movement, the Stochastic has reversed downwards, the MACD histogram is decreasing in the positive zone and has a "bearish" discrepancy with the price chart.


On the weekly chart, the pair continues to trade within the long-term ascending channel. Last week, the price tested its upper limit around 1.0130 (61.8% Fibo expansion), after which it resumed its decline, the target of which may be the 0.9720 mark (23.6% retracement), supported by the middle line of the Bollinger Bands. The key for the "bulls" remains the level of 1.0000, a breakout of which can lead to a resumption of growth to the area of 1.0130, 1.0250.

Technical indicators do not give a single signal: the Bollinger Bands are directed upwards, confirming the preservation of a long-term upward trend, but the Stochastic has reversed downwards, and the MACD histogram is shrinking in the positive zone.

In the near future, the continuation of a price decline seems possible, but it will be limited by the levels of 0.9720 (23.6% retracement, the middle line of the Bollinger Bands for W1) and 0.9685 (61.8% retracement for D1). If the quotes consolidate above 1.0000 (0.0% retracement for W1), growth will be able to resume to the levels of 1.0130 (0.0% retracement for D1, 61.8% Fibo expansion for W1) and 1.0250 (the area of intersection with the upper boundary of the ascending channel).

Resistance levels: 1.0000, 1.0130, 1.0250. | Support levels: 0.9855, 0.9720, 0.9685.

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