USD/CHF Price Analysis: Holds to earlier gains but surrenders 0.9000, as the outlook turns neutral
|- USD/CHF trades below the weekly high, failing to conquer the 50-day EMA; currently trading at 0.8984, up 0.05%.
- The technical outlook remains neutral unless the pair can reclaim the 50-day EMA at 0.9027 and the 100-day EMA at 0.9144.
- RSI indicator suggests buyers are moving in, but key resistance levels lie ahead; downside risks emerge below the 20-day EMA.
USD/CHF holds to its earlier gains achieved after three days of consecutive gains. However, it’s trading well below the weekly high, which tested the 50-day Exponential Moving Average (EMA) at 0.9027 but failed to conquer the latter. Hence, the USD/CHF retreated beneath the 0.9000 figure, and as the Asian session begins is trading at 0.8984, up 0.05%.
USD/CHF Price Analysis: Technical outlook
Wednesday’s price action formed an inverted hammer candlestick that fell shy of cracking the 50-day EMA, though it retreated and stood above the 20-day EMA at 0.8951. However, the USD/CHF bias remains neutrally biased unless buyers reclaim the 50-day EMA at 0.902, followed by the 100-day EMA at 0.9144.
The Relative Strength Index (RSI) indicator entered the bullish territory, suggesting buyers are moving in, while the 3-day Rate of Change (RoC) jumped above the neutral line.
Therefore, the path of least resistance is upward biased in the near term. The USD/CHF first resistance would be the 0.9000 figure, followed by the 50-day EMA at 0.9027. Once cleared, ad upside risks lie at 0.9120, the April 10 high, followed by the April 3 daily high of 0.9196.
Conversely, downside risks for the USD/CHF emerge below the 20-day EMA at 0.8951, followed by the psychological 0.8900 mark.
USD/CHF Price Action – Daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.