USD/CHF Price Analysis: Buyers in control must hold the fort around the 100-DMA

The USD/CHF rallies above the 100-day EMA and extended its gains to two straight days, up by more than a half percent, on risk-on impulse,  as US bond yields rise, underpinned by Fed’s hawkish commentary. The greenback is also trading positive, as depicted by the US Dollar Index, climbing 0.18%, sitting at 106.546. At the time of writing, the USD/CHF is trading at 0.9625.

USD/CHF Price Analysis: Technical outlook

In yesterday’s article, I mentioned that “the USD/CHF edged higher, forming a bullish-engulfing chart pattern, a reversal pattern indicating buyers outweigh sellers, keeping risks skewed to the upside.” On Wednesday, the USD/CHF advanced sharply, cracking the 100-day EMA at 0.9626, as the major extended its gains towards the daily high at 0.9651. Although the USD/CHF is retracing, the major remains neutral-to-bullish biased. That said, USD/CHF traders should be aware of a move towards the confluence of the 50 and 20-day EMAs around 0.9674-77.

USD/CHF 1-hour chart

The USD/CHF is upward biased once the major broke solid resistance at a fifteen-day-old downslope trendline around 0.9559, putting a lid on Tuesday’s rally towards 0.9600. Additionally, the major reclaimed the 200-hour EMA at 0.9580, which exacerbated a jump above the 0.9600 area. That said, the USD/CHF first resistance would be the R2 daily pivot at 0.9644, shy of Wednesday’s daily high at 0.9651. Once cleared, the USD/CHF’s following resistance levels will be the July 22 daily high at 0.9704 and July 21 high at 0.9739.

USD/CHF Key Technical Levels