USD/CHF Price Analysis: Climbs amidst US rate hike expectations, risk-off mood
- USD/CHF sees a 0.30% rise late in the North American session, fueled by expectations of a US rate hike in June.
- Despite a neutral to downward bias, the recent correction has investors optimistic about breaching several resistance levels, including the crucial 0.9000 mark.
- Mixed signals from oscillators suggest caution is warranted for USD/CHF buyers.
USD/CHF advances late in the North American session, as the greenback remains bolstered by expectations the US central bank would raise rates in June. Furthermore, the market mood was dampened amidst uncertainty about the US Federal Reserve (Fed) Chair Jerome Powell's testimony in the US Congress. At the time of writing, the USD/CHF is trading at 0.8980, a gain of 0.30%.
USD/CHF Price Analysis: Technical outlook
From a technical perspective, the USD/CHF is neutral to downward biased. However, the recent correction keeps buyers hopeful of shifting the pair bias to neutral if several resistance levels are breached. Firstly, the USD/CHF must reclaim the 0.9000 figure, followed by conquering the 20-day Exponential Moving Average (EMA) at 0.9007. In that outcome, the next supply zone would be the June 15 daily high at 0.9056, followed by the confluence of the
Conversely, and the path of least resistance, the USD/CHF first support would be the June 16 low at 0.8940. Once cleared, the pair could dive towards the 0.8900 figure, ahead of challenging the year-to-date (YTD) low of 0.8819.
Oscillators offer mixed signals, with the Relative Strenght Index (RSI), although at bearish territory, aiming north; while the three-day Rate of Change (RoC) portrays the pair
USD/CHF Price Action – Daily chart
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.
