- USD/CHF edges higher on Tuesday in the early Asian session.
- The lower-highs and lower-lows formation depicts the downward trend in the pair since September 30.
- Additional gains for the pair if price decisively breaks 0.9200.
USD/CHF consolidates gains on Tuesday morning's Asian trading hours. The pair stayed in a relatively narrow trading band after posting solid gains of more than 40-pips in the US session. At the time of writing, USD/CHF is trading at 0.9199, up 0.01% for the day.
USD/CHF daily chart
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On the daily chart, after testing 5-month highs at 0.9368 on September, 30, the pair has been under downward pressure. The lower highs and lower lows trend can be identified within the downward trend channel. Furthermore, the spot showed a weakening trend after it slipped below the 50-day Simple Moving Average (SMA) at 0.9217.
If the price sustains the intraday high it could immediately test the 0.9225 horizontal resistance zone, followed by Wednesday’s high at 0.9252. In addition to that, the Moving Average Convergence Divergence (MACD) trades below the midline. Any uptick in the MACD would encourage the USD/CHF bulls to test the 0.9273 horizontal resistance level.
Alternatively, if the price reverses direction then the possibility of meeting the 0.9170 horizontal support level emerges and then the previous day’s low of 0.9150.
Next, the market participant would retest the 0.9125 horizontal support level.
USD/CHF additional levels
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