USD/CHF Price Analysis: Bounces from multi-month lows, approaching the 100-DMA

The USD/CHF stages recovery after hitting a four-month low at 0.9470.
Sentiment remains negative, bolstering appetite for the greenback.
In the long-term, the USD/CHF is neutral biased, but short-term is tilted upwards, opening the door for a test of the 0.9600 mark.

Christian Borjon Valencia FXStreet

The USD/CHF rebounded from under the June 29 swing low at 0.9495 and climbed to the daily high at 0.9559s, amidst a sour market mood, on US-China tussles, while also Fed speakers continued to push back against the market’s reaction to the FOMC 75 bps rate hike. At the time of writing, the USD/CHF is trading at 0.9551, up 0.67%.

USD/CHF Price Analysis: Technical outlook

The USD/CHF is neutral biased on sellers’ failure to hold the exchange rate below 0.9495, which would have paved the way towards the 200-day EMA at 0.9412. Instead, the USD/CHF edged higher, forming a bullish-engulfing chart pattern, a reversal pattern indicating buyers outweigh sellers, keeping risks skewed to the upside. Besides, the Relative Strength Index (RSI) is about to cross over its 7-day RSI’s SMA, which would open the door for higher prices.

Therefore, the USD/CHF first ceiling level would be the 100-day EMA at 0.9614. Break above will expose the major for further upside. Otherwise, a breach under 0.9500 could send the pair towards 0.9412, the 200-day EMA.

USD/CHF 1-hour chart

The USD/CHF is neutral-upward biased but faced solid resistance at a fifteen-day-old downslope trendline, which capped the rally at 0.9559. However, with the spot price above the 20, 50, and 100-hour EMAs, alongside the Relative Strength Index (RSI) aiming higher. That could open the door for a USD/CHF re-test of 95.60, which would lift the major towards the 200-hour EMA at 0.9592.

USD/CHF Key Technical Levels

USD/CHF

Overview
Today last price	0.9545
Today Daily Change	0.0049
Today Daily Change %	0.52
Today daily open	0.9496

Trends
Daily SMA20	0.9691
Daily SMA50	0.968
Daily SMA100	0.9617
Daily SMA200	0.9415

Levels
Previous Daily High	0.9536
Previous Daily Low	0.9482
Previous Weekly High	0.9668
Previous Weekly Low	0.9502
Previous Monthly High	0.9886
Previous Monthly Low	0.9502
Daily Fibonacci 38.2%	0.9503
Daily Fibonacci 61.8%	0.9516
Daily Pivot Point S1	0.9473
Daily Pivot Point S2	0.9451
Daily Pivot Point S3	0.9419
Daily Pivot Point R1	0.9527
Daily Pivot Point R2	0.9559
Daily Pivot Point R3	0.9581

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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