USD/CHF Price Analysis: Bulls remain in control, overbought conditions warrant caution

USD/CHF gained strong positive traction on Monday and shot fresh multi-month tops.
Extremely overbought RSI on the daily chart warrants some caution for bullish traders.
Any slide below 0.9300 might continue to attract some dip-buying and remain limited.

Haresh Menghani FXStreet

The USD/CHF pair caught some fresh bids on the first day of a new trading week and shot to the highest level since July 2020, around mid-0.9300s during the first half of the European session. The mentioned level marks the 50% Fibonacci level of the 0.9902-0.8758 downfall, which if cleared decisively will set the stage for additional gains.

Given the recent bullish breakout through the very important 200-day SMA and the 38.2% Fibo. level around the 0.9200 mark, the bias remains tilted in favour of bullish traders. The emergence of some dip-buying on Monday adds credence to the constructive outlook.

That said, extremely overbought conditions on the daily chart warrant some caution before positioning for any further appreciating move. This makes it prudent to wait for some near-term consolidation or a modest pullback before the USD/CHF pair prolongs its recent strong bullish trajectory.

Nevertheless, the USD/CHF pair seems all set to aim back to reclaim the 0.9400 round-figure mark and climb further towards testing the 61.8% Fibo. level, around the 0.9460 region.

On the flip side, the 0.9300 mark now seems to protect the immediate downside. Any further pullback might still be seen as a buying opportunity and remain limited near the daily swing lows, around the 0.9280-75 region. However, sustained weakness below might trigger some long-unwinding trade and drag the USD/CHF pair towards the 0.9200 mark (38.2% Fibo. level).

USD/CHF daily chart

Technical levels to watch

USD/CHF

Overview
Today last price	0.9336
Today Daily Change	0.0026
Today Daily Change %	0.28
Today daily open	0.931

Trends
Daily SMA20	0.9036
Daily SMA50	0.8946
Daily SMA100	0.8985
Daily SMA200	0.9124

Levels
Previous Daily High	0.9319
Previous Daily Low	0.9258
Previous Weekly High	0.9319
Previous Weekly Low	0.9071
Previous Monthly High	0.9102
Previous Monthly Low	0.8871
Daily Fibonacci 38.2%	0.9296
Daily Fibonacci 61.8%	0.9281
Daily Pivot Point S1	0.9272
Daily Pivot Point S2	0.9234
Daily Pivot Point S3	0.9211
Daily Pivot Point R1	0.9333
Daily Pivot Point R2	0.9357
Daily Pivot Point R3	0.9394

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD remains offered below 1.1800, looks at US data

EUR/USD is still trading on the defensive in the latter part of Thursday’s session, while the US Dollar maintains its bid bias as investors now gear up for Friday’s key release of the PCE data, advanced Q4 GDP prints and flash PMIs.

GBP/USD bounces off monthly lows near 1.3430

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3430 area, its lowest levels in the month. The move reflects a firmer Greenback, supported by another round of solid US data and a somewhat divided FOMC Minutes.

Gold drifts higher to near $5,000 on heightened US-Iran tensions

Gold price holds positive ground near $5,000 during the early Asian session on Friday. The precious metal edges higher as escalating tensions between the United States and Iran boost safe-haven demand. Traders brace for the preliminary reading of US Gross Domestic Product for the fourth quarter, the Personal Consumption Expenditures and the S&P Global Purchasing Managers Index data, which are due later on Friday.

Ethereum: Active addresses halt growth as US selling pressure eases

Ethereum network growth has declined after two months of explosive increase. US selling pressure has eased following an improvement in the Coinbase Premium Index. ETH extends its range-bound move below the $2,107 resistance and above $1,740 .

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.