USD/CHF falls to 4-month lows, key support levels eyed

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USD/CHF falls to a low of 0.9780, lowest since April this year

The near-term momentum is very much favouring sellers right now as price fails to take out the 100-hour MA in trading yesterday. And with the dollar surrendering early gains today, price is slowly inching lower and has broken the June low of 0.9789.

Right now, price is moving towards a test of the 200-day MA (blue line) @ 0.9751 and a break there will reinstate a bearish bias in the pair in the bigger picture. The last time price traded below both the key daily moving averages was a little more than four months ago.

But that’s not the only key support level that’s in play:

The 200-week MA (blue line) @ 0.9760 is also lurking nearby and that is also another key level to look out for. A break below that will also reinstate a bearish bias on the weekly chart and give further fuel for sellers to drive price lower still.

The major caveat though for any move lower will be SNB intervention. Just how much more does it have to fall before the SNB starts drawing the line, that will be the “real defense/support” for the pair.

But regardless, you can’t ignore technical levels too and right now the momentum is very much bearish. Break those key levels mentioned above, and it turns even more bearish. I don’t want to say it’s a falling knife just yet, but it sure is setting up to be the case. Your move now, Mr. Jordan.

This article was originally published by Forexlive.com. Read the original article here.