- USD/CHF has turned sideways after a firmer recovery move from around 0.9200.
- A follow-up buying after a Double Bottom formation indicates the strength of the US Dollar.
- The RSI (14) has comfortably shifted into the bullish range of 60.00-80.00, which indicates more upside ahead.
The USD/CHF pair has picked strength after a minor correction to near 0.9300 in the Asian session. The Swiss franc asset faced barricades near 0.9325 in an attempt to extend its upside journey. On Wednesday, the major displayed a responsive buying action after dropping to near 0.9204.
The major could remain inside the woods ahead of the release of the United States inflation data. Meanwhile, the risk appetite of investors is significantly improved as S&P500 has displayed back-to-back bullish trading sessions despite anxiety ahead of the release of the US Consumer Price Index (CPI) data. The US Dollar Index (DXY) is hovering around 103.00.
On an hourly scale, USD/CHF witnessed a sharp bullish reversal after forming a Double Bottom chart pattern near the round-level support of 0.9200. After sensing weak selling interest near the aforementioned support, bulls made a comeback and pushed the asset higher vigorously.
The 20-and 50-period Exponential Moving Averages (EMAs) at 0.9283 and 0.9260 are upward-sloping now, which adds to the upside filters.
Meanwhile, the Relative Strength Index (RSI) (14) has comfortably shifted into the bullish range of 60.00-80.00 from the 40.00-60.00 range, which indicates that the bullish momentum has been triggered.
Going forward, a break above Wednesday’s high at 0.9332 will drive the asset towards December 12 high at 0.9367 followed by the round-level resistance at 0.9400.
Alternatively, a slippage below Monday’s low at 0.9167 will result in a fresh downside journey toward the March low at 0.9150. A downside move below the March low will expose the asset to January 17 low at 0.9117.
USD/CHF hourly chart
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