USD/CHF Price Analysis: A break above 0.9500 to strengthen US Dollar bulls


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  • The formation of the Double Bottom chart pattern supports a bullish reversal.
  • The asset is on the verge of shifting its business comfortably above the 20-period EMA.
  • A range shift by the RSI (14) into 40.00-60.00 indicates a loss in the downside momentum.

The USD/CHF pair is oscillating in a narrow range below the psychological resistance of 0.9500 in the early Tokyo session. The asset witnessed a juggernaut rally on Monday after sensing strength around 0.9410. The US Dollar received significant attention for parking funds by the market participants amid the risk-aversion theme.

The US Dollar Index (DXY) is having a sigh after a vertical rally and is also preparing to extend its rally amid a significant decline in investors’ risk appetite.

On a four-hour scale, the asset has rebounded after forming a ‘Double Bottom’ chart pattern. The formation of the above-mentioned chart pattern indicates a bullish reversal as the asset tested previous lows on November 24 around 0.9388 with less selling pressure.

The major is attempting to cross the 20-period Exponential Moving Average (EMA) at 0.9482, which will turn the short-term trend towards the upside.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the 40.00-60.00 range from the bearish range of 20.00-40.00, which signals a loss in the downside momentum.

Going forward, a decisive move above the psychological resistance of 0.9500 will drive the pair towards the 50-EMA at 0.9572, followed by November 21 high around 0.9600.

Alternatively, a drop below November 24 low at 0.9388 will drag the asset towards November 15 low at 0.9356. A slippage below the latter will expose the asset for more downside towards February 10 high around 0.9300.

USD/CHF hourly chart

USD/CHF

Overview
Today last price 0.9492
Today Daily Change 0.0041
Today Daily Change % 0.43
Today daily open 0.9451
 
Trends
Daily SMA20 0.9678
Daily SMA50 0.9808
Daily SMA100 0.9725
Daily SMA200 0.9635
 
Levels
Previous Daily High 0.95
Previous Daily Low 0.9423
Previous Weekly High 0.9598
Previous Weekly Low 0.9388
Previous Monthly High 1.0148
Previous Monthly Low 0.9781
Daily Fibonacci 38.2% 0.9471
Daily Fibonacci 61.8% 0.9452
Daily Pivot Point S1 0.9416
Daily Pivot Point S2 0.938
Daily Pivot Point S3 0.9338
Daily Pivot Point R1 0.9493
Daily Pivot Point R2 0.9535
Daily Pivot Point R3 0.957

 

 

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