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USD/CHF Falls to 0.8950 as Bearish Bias Dominates, Targeting 0.8900 Support

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  • February 24, 2025
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The USD/CHF currency pair continues to go lower, trading around 0.8960 in Asian trading and sustaining losses for the third straight session. The technical indicators are indicating a persistent bearish bias, with the pair trading below both the nine- and 14-day EMAs and the RSI holding below the 50 mark, supporting further weakening. Market sentiment is pointing towards a move towards the psychological support level of 0.8900, and a break below this level may open the way for a further fall, possibly to the two-month low of 0.8736. On the other hand, a bounce above the nine-day EMA of 0.9009 may indicate a short-term bounce, opening the way for an advance towards the nine-month high of around 0.9201. KEY LOOKOUTS • The pair remains under bearish pressure, trading below both the nine- and 14-day EMAs, which reinforces a continued downtrend and potential further depreciation. • An RSI persistently below 50 underscores the bearish trend, signaling oversold conditions that may prompt an upward correction after further downside extension. • A break below the key support at 0.8900 would trigger further declines, with possible targets being the two-month low of 0.8736 if the selling pressure accelerates. • On the other hand, a break above the nine-day EMA of 0.9009 could be a sign of short-term bounce and lay the groundwork for moving higher towards the nine-month high of 0.9201. USD/CHF is still under strong bearish pressure, trading below the nine-day and 14-day EMAs, which supports a strong downtrend and further weakening. The 14-day RSI always stays below 50, reflecting oversold levels that could trigger a corrective bounce after more price falls. If the pair breaks below the key psychological support of 0.8900, it may speed up a deeper fall towards the two-month low of 0.8736. In contrast, a breakdown below the nine-day EMA at 0.9009 can initiate short-term recovery with a potential stage set for the testing of the nine-month peak around 0.9201. USD/CHF trades below crucial moving averages with the 14-day RSI below 50, indicating bearish sentiment and continued depreciation. Breaking below 0.8900 may send the pair towards the two-month trough at 0.8736, while advancing above 0.9009 may initiate a short-term correction. • Trading close to 0.8960 during Asian trading. • Sustained losses over three consecutive sessions. • Trades below both the nine-day and 14-day EMAs, showing bearish momentum. • The 14-day RSI is still below 50, supporting the bearish trend. • Psychological support at 0.8900, a break potentially triggering more declines. • A fall below 0.8900 might have the pair targeting the two-month low at 0.8736. • On the positive side, the nine-day EMA of 0.9009 is serving as the key resistance, with rebound potentially stretching to the nine-month high around 0.9201. USD/CHF continues to be mainly bearish since the pair still continues to display vulnerability in the market. The pair is supported mainly by the sustained selling pressure that has held the pair below critical levels of support. Although the duo has seen its third straight losing day, there is a need to watch for possible changes in market sentiment that may affect its direction in subsequent sessions. Lacking major reversals, USD/CHF may continue being susceptible to more downgrades in light of its prolonged bearish momentum. But traders need to monitor general economic trends or geopolitical events that may influence market trends and investor sentiment. USD/CHF Daily Price Chart Chart Source: TradingView Most market players are observing the pair with interest, given the general economic uncertainties and global financial trends that may be affecting investor sentiment. In the future, analysts are keeping an eye out for how changes in global economic policies and market risk appetite may affect the USD/CHF dynamic. While some believe the situation will stabilize as market conditions change, others foresee that ongoing caution may cause further adjustments, and thus, keeping an eye on key economic events is crucial. TECHNICAL ANALYSIS USD/CHF shows a strong bearish trend, with the pair persistently trading below its nine-day and 14-day exponential moving averages. The 14-day RSI remaining below the 50 level further indicates the bearish momentum, implying that the market is now in an oversold position. Levels of importance are closely watched, with psychological support at 0.8900 potentially acting as a key hurdle, and potential support around the nine-day EMA of 0.9009 providing a potential turning point should the buyers enter. FORECAST Should market sentiment change and the general public regain confidence in buying the pair, the USD/CHF may break beyond near-term resistance levels, which can trigger a reversal move that would likely drive the pair toward higher ground. Increased buying interest and positive macroeconomic news may help sustain this recovery, and it is possible that a change in momentum is on the cards. If the pair reverses the current bearish momentum and can break above the nine-day EMA, increased buying interest may be seen. A recovery in the 14-day RSI, rising from oversold levels, can aid in forming a short-term uptrend, putting the USD/CHF on course to challenge resistance levels and target the nine-month high. On the other hand, if there’s sustained selling pressure, the pair may continue probing lower support levels. A breakdown below the 0.8900 threshold could lead to further losses, with ongoing RSI weakness support for bearish sentiment and pushing the pair towards the lower lows seen in the last couple of months. A breakdown below key support levels may deepen the fall, suggesting that persistent bearish conditions may push USD/CHF to challenge lower levels.

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Currencies NZD/USD

NZDUSD Price Forecast: Bearish Bias Remains Intact Stagnating Below 0.5900

NZDUSD Price Forecast: Bearish Bias Remains Intact Stagnating Below 0.5900 The New Zealand Dollar (NZD) against the US Dollar (USD) on Wednesday faces mounting downward pressure as it breaks its three-day winning streak and traded to around the 0.5890 level in the European session Wednesday. The NZD/USD pair sits in a descending channel, with further bearish bias looking possible unless strong reversal is seen. Pair shows weakness, especially below key 0.5900, and short-term momentum remains bearish. Bearish Momentum: NZD/USD in a Descending Channel From the daily NZD/USD chart, a bearish outlook seems to be of concern for the bullish traders because the chart seems to be moving in a downward trend within a well-defined descending channel. A bearish sentiment usually prevails when the market is entering a kind of downtrend, as the pair cannot keep its course upwards but falls backwards. In the case of NZD/USD, this kind of pattern grows clearer because, day by day, it remains trading below both nine-day and 14-day EMAs. Currently, the nine-day EMA sits below the 14-day EMA, which is an important short-term indicator of price momentum and displays persistent weakness in the market. This means that bearish control is most likely to continue until a strong catalyst forces a directional shift in sentiment. The Relative Strength Index (RSI) – the measure of the speed and change of price movements – is also sitting below the neutral 50 level. When the RSI is constantly under 50, it usually means the market tends to have a bearish look, which commensurate with current trends for NZD/USD. Resistance Levels: Immediate Hurdles for NZD/USD Resistance levels for NZD/USD, however, are found in the immediate upside. The first level of key resistance is currently sitting at 0.5907, at the nine-day EMA. This represents the zone that sellers will be keenly watching for as a potential turning point. A break back above the nine-day EMA would be a marked shift in sentiment, though as of now, the pair sits below this resistance, which continues to support the bearish view. Above the nine-day EMA, the next level of resistance is at the 14-day EMA, which stands at 0.5926. This is a more important resistance level since it coincides with the upper boundary of the descending channel. From the breakout above the 14-day EMA and the upper boundary of the channel, the bearish momentum could be weakening, allowing the pair to further advance toward higher levels, even reaching the psychological level 0.6000. Given the current bearish momentum, however, such a breakout seems less likely over the short run unless something fundamental in market sentiment were to shift. NZD/USD Daily Price Chart Source: TradingView, prepared by Richard Miles Levels of Support : 0.5850 and the Lower Boundary of the Channel On the downside, the NZD/USD pair is facing potential support around the 0.5850 level, which represents a psychological level for the pair. If the price continues to slide lower, this support zone will be critical in determining whether the bearish trend will extend further. If the price breaks below 0.5850, the next level of support is likely to be the lower boundary of the descending channel, which is found around the 0.5930 region. The zone is of high importance situated around 0.5850 as it is a throwback support zone – a term used to describe a price zone where the market had previously shown support or resistance. If the NZD/USD pair can remain above the 0.5850 zone, it might be a good place for a reversal or at least a consolidation. On the other hand, if the price breaks decisively below that level, it would endorse the bearish view and push the pair down even further. Downside Risk: Testing the Two-Year Low at 0.5772 If the NZD/USD fails to maintain strength above 0.5850 and breaks below the lower boundary of its falling channel, critical support will be found at the two-year low at 0.5772. It reached the level last in November 2023, and this will be a signal for another decline in the value of the Kiwi versus the US Dollar, should the pair continue to the mentioned level. Such a move towards this level would squeeze the bearish sentiment and thus attract more selling pressure with further declines. Traders will be keenly watching how the price reacts to the lower boundary of the channel and the 0.5850 support. A break below these levels could potentially accelerate the decline and bring the pair closer to the two-year low of 0.5772. On the other hand, a failure to break below these levels might indicate a temporary consolidation, but the overall market sentiment would remain cautious and bearish. What Could Reverse the Bearish Trend? While the current outlook for NZD/USD remains bearish, it’s essential to consider potential catalysts that could reverse the trend. For instance, if there were a significant shift in market sentiment towards riskier assets or a sudden change in global economic conditions, it could provide support for the New Zealand Dollar. Positive economic data from New Zealand or a change in the US Federal Reserve’s policy stance could also impact the NZD/USD pair. Furthermore, if the pair breaks above the nine-day and 14-day EMAs, it could signal that the bears are losing control, allowing for a move higher. This scenario however, looks unlikely to come to pass without a significant fundamental trigger, as the current market sentiment is on further weakness for the Kiwi. What to Expect for NZD/USD Short-term view: The outlook for NZD/USD remains bearish, but the price was unable to stay above the key level of 0.5900. The pattern of the descending channel suggests further downside, with the support areas around 0.5850 and the lower boundary of the channel being areas to watch. A break below these levels would further solidify a strong bearish case, with a view toward reaching the two-year low of 0.5772. On the positive side, two important barriers that one needs to watch are resistance levels at the nine-day EMA (0.5907) and at the

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