Swissy Bears Are Eyeing More Decline

Contributor Image
Written By
Contributor Image
Written By
Tran Dai Phat
Tran Dai Phat, a Forex Educator at FXTM with a Bachelor's Degree in Investment, brings multiple years of financial market experience to the aid of aspiring traders everywhere. He conducts research on stocks, forex, and commodities, sharing his insights to empower traders and encourage the development of simple strategies for maximizing trading potential.

The USDCHF currency pair on the Daily Chart has been in a downtrend since 25 September 2020 when it registered the high price at 0.92954, followed by a series of lower tops and bottoms.

On 21 October 2020, the Swissy recorded the low price of 0.90296. When applying Oscillator Analysis to the price chart, one can see that price is trading below the SMA 60 period Moving Average line, a fact which confirms the Swissy’s downward direction.

Technical Analysis

Furthermore, the Moving Average/Convergence Divergence (MACD) Oscillator is recording values below the zero line which hints to the bearish bias of financial instrument.

Additionally, the Relative Strength Index (RSI) Oscillator registers values below the fifty line which indicates negative sentiment.

All three technical indicators are in agreement with regards to the downward bias of the pair.


Three price targets may be calculated upon applying the Fibonacci tool to the price chart.

  • The first price target is estimated at 0.90382 (161.8%).
  • The second price target is seen at 0.89602 (261.8%).
  • The third price target is projected at 0.88340 (423.6%).

While the first target has already been breached, the Swissy is currently trading below the downtrend line. Its current price is 0.97% below last week’s close after a sharp decline during a period of heavy selling.

The presence of the Bearish Evening Star pattern hints at a potential rally to the downside. Of course, supply and demand as well as the crowd sentiment will determine the future course of Swissy.

USDCHF Daily 22nd

For more information, please visit: FXTM

Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

FXTM is a top-rated forex and CFD broker established in 2011 and operating across 4 continents. The company is secure and regulated by leading authorities, including the FCA and CySEC. Offering 1000+ day trading markets and three account types, they cater to all levels of trader.