USD/CHF Price Analysis: Approaches critical resistance below 0.9300 amid a dismal market mood

The USD/CHF pair has corrected after facing barricades around 0.9250 in the early Asian session. The Swiss Franc asset has dropped, however, the expectations of a recovery move look favored amid the weak risk appetite of the market participants. The asset is likely to display volatility ahead of the Swiss Consumer Price Index (CPI) (Jan) on Monday. On a monthly basis, the economic data is seen to expand by 0.3% vs. a deflation of 0.2%. The annual data is seen lower at 2.7% versus 2.8% released earlier.

The mega event of this week will be the United States inflation data, which will release on Tuesday. The US Dollar Index (DXY) is expected to remain in action as investors are expecting an acceleration in the inflation figures by 0.4% on a monthly basis. The return provided on the 10-year US Treasury yields has scaled above 3.74%, the highest in a one-month period.

USD/CHF has managed to extend its recovery move above the 23.6% Fibonacci retracement (placed from February low at 0.9051 to February 6 high at 0.9291 on a two-hour scale. The asset is now approaching the supply zone placed in a 0.9280-0.9290 range.

The 20-period Exponential Moving Average (EMA) at 0.9227 is acting as major support for the US Dollar bulls.

Meanwhile, the Relative Strength Index (RSI) (14) is struggling to extend into the bullish range of 60.00-80.00, which indicates an absence of a potential trigger for fresh impetus.

For a fresh upside, the Swiss Franc asset needs to deliver a confident break above the aforementioned supply zone, which will drive the asset towards January 12 high at 0.9363 followed by January 6 high at 0.9410.

In an alternate scenario, a breakdown below February 9 low at 0.9161 will drag the asset toward the round-level support at 0.9100. A slippage below the latter will drag the asset toward February low at 0.9051.

USD/CHF two-hour chart