USD/CHF Price Analysis: Initial resistance level is seen at 0.8910
|- The USD/CHF starts a new week on a positive note and edges above 0.8900 on Monday.
- The Relative Strength Index (RSI) stands below 50, indicating the extended downside cannot be ruled out.
- Initial resistance is seen at 0.8915, the 0.8880 area is the immediate support level.
USD/CHF edges higher to 0.8900 area during the Asian trading hours on Monday. The pair rebounds from a two-month low of 0.8875 as the US Dollar (USD) resumes the demand. The pair currently trades near 0.8905, up to 0.20% on the day.
According to the one-hour chart, USD/CHF holds below the 25-hour and the 50-hour Exponential Moving Averages (EMA), which means the path of least resistance for the USD/CHF pair is to the downside.
The initial resistance level is seen at 0.8914, representing the 25-hour EMA en route to 0.8932, the 50-hour EMA. A break above the latter would see an increase to 0.8950, representing the horizontal line.
On the flip side, the 0.8880 area acts as an immediate support level (low of July 7). A breach of the mentioned level would expose to 0.8870 (low of May 10), followed by 0.8835 (low of May 5).
Meanwhile, the Relative Strength Index (RSI) stands below 50, bearish territory, meaning the extended downside cannot be ruled out.
USD/CHF 1-hour chart
Key levels to watch
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