USD/CHF Price Analysis: Slips on US recession woes, capped by the 100-DMA
|- USD/CHF takes a hit as weaker-than-expected US economic data spur recession fears, driving the Swiss Franc up.
- From a technical perspective, the USD/CHF pair is neutrally biased, awaiting a fresh catalyst for definitive market direction.
- Amid mixed signals from market oscillators, expectations of a hawkish Swiss National Bank may provide a catalyst for further USD/CHF downside.
USD/CHF slips after clashing with the 100-day Exponential Moving Average (EMA) at 0.9125, dropping below the 0.9100 mark, sponsored by a soft US Dollar (USD). Weaker-than-expected US economic data stirred recession fears amongst investors. Therefore, the Swiss Franch (CHF) rises, as shown by the USD/CHF pair trading at 0.9063, down 0.27%.
USD/CHF Price Analysis: Technical outlook
From a daily chart perspective, the USD/CHF is neutrally biased, waiting for a fresh catalyst that could give direction to the USD/CHF pair. Meanwhile, the USD/CHF is trapped on the upside by the 100-day Exponential Moving Average (EMA) at 0.9123; on the flip side, the 50-day EMA is at 0.9037.
In bullish territory, the Relative Strength Index (RSI) indicator aims downwards, while the 3-day Rate of Change (RoC), even though in bearish territory, climbs toward the neutral area. Mixed signals between oscillators might prevent traders from opening new long/short positions. But, expectations for a hawkish Swiss National Bank (SNB) could open the door for further downside.
The USD/CHF first support would be the 50-day EMA. A breach of the latter will expose the 20-day EMA at 0.9027, followed by the 0.9000 psychological support, before diving toward February 16, 2021, Low of 0.8926.
USD/CHF Price Action – Daily chart
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