USD/CHF Price Analysis: Lacks confidence above 0.9470-0.9500 demand zone
|- A Double Top formation near 200-EMA bolstered the downside gestures.
- Greenback bulls are lacking confidence above the demand zone placed around 0.9500.
- A drop below 40.00 by the RSI (14) will trigger the downside momentum.
The USD/CHF pair is displaying topsy-turvy moves after dropping below the critical support of 0.9560 on Monday. Broadly, the asset is declining after failing to surpass the crucial hurdle of 0.9640. The major refreshed its weekly low at 0.9511 on Tuesday.
The formation of a Double Top on a four-hour scale has already underpinned the bearish mood. A failure in overstepping the critical hurdle of 0.9650 resulted in a steel fall in the asset. Also, the 200-period Exponential Moving Average (EMA) at 0.9650 acted as a roadblock for the greenback bulls.
The asset has surrendered the cushion of 50-EMA at 0.9572 and is declining towards the demand zone, which is placed in a 0.9470-0.9500 range.
Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in the 40.00-60.00 range, which indicates a consolidation ahead. A drop below 40.00 by the RSI (14) will trigger the downside momentum.
Should the asset drop below the above-mentioned demand zone, the Swiss franc bulls will drag the asset towards the round-level support at 0.9400, followed by March 24 high at 0.9344.
On the flip side, the asset may display an upside move towards July 22 high at 0.9704 and July 7 high at 0.9743 after violating the double top resistance.
USD/CHF four-hour chart
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