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USD/CHF pulls back after false breakout above 0.8100
The move comes after the pair touched a five-day high at 0.8108 and retreated to about 0.8078 as risk sentiment weakened amid renewed Iran-related shipping concerns.
USD/CHF reversed lower after a false breakout above 0.8100, after the pair reached a five-day high of 0.8108 on Wednesday. FXStreet said the franc pair was last around 0.8078, down about 0.02% as overall risk appetite deteriorated.
FXStreet linked the weaker tone to US President Donald Trump’s suggestion of an end to the ceasefire and to an attack by Iran on ships on Tuesday. The pullback followed a “morning star” setup earlier in the week and a test of the 0.8100 level.
On the upside, FXStreet said USD/CHF would need to reclaim 0.8108, then 0.8120, to support bullish continuation. Further resistance areas cited include 0.8200, 0.8250, and 0.8300.
On the downside, a drop below the 0.8000 psychological level could intensify a move toward the 50-day simple moving average at 0.7934, with the 200-day SMA at 0.7915 and then 0.7900 also noted. FXStreet added that the RSI remains bullish but is fading.