USD/CHF Price Analysis: Clings above 0.9600 as buyers prepare to invalidate the double top

Sellers’ failure to reclaim 0.9544 opened the gates for buyers as they stepped in and lifted the USD/CHF.
Sentiment remains mixed, courtesy of recession threats and inflation concerns.
The USD/CHF is upward biased in the near term and could challenge 0.9700.

Christian Borjon Valencia FXStreet

The USD/CHF is barely advancing as the Tuesday Asian session begins; after Monday’s calm session witnessed buyers overcoming sellers and the USD/CHF staying afloat above the 0.9600 mark. At the time of writing, the USD/CHF is trading at 0.9609.

Asian equity futures are set to open mixed on Tuesday’s session. The market narrative hasn’t changed, with high inflation and global economic slowdown, keeping investors uneasy. In the meantime, US President Joe Biden could announce a rolling back of some tariffs on China, as reported by Dow Jones.

In the meantime, the US Dollar Index, a gauge of the greenback’s value, edges up 0.07%, sitting at 105.193, a tailwind for the USD/CHF.

USD/CHF Daily chart

The USD/CHF is upward biased, despite the recent downtrend originated by the Swiss National Bank (SNB) hiking rates 0.50%, a headwind for the pair, which tumbled from the parity towards 0.9495. Since then, the USD/CHF has been staging a comeback and has broken resistance levels, like the May 27 swing low at 0.9544. the double top neckline, which opened the door to current price levels.

Oscillators aim higher, though within negative territory, but accelerate to the upside, as shown by the Relative Strenght Index (RSI).

Therefore, the USD/CHF first resistance would be the Jule 1 high at 0.9641, which, once broken, would expose the 0.9700. Break above will clear the way toward the 50-day moving average (DMA) at 0.9732.

USD/CHF 1-hour chart

The USD/CHF has a clear pathway to the upside in the near term. The Relative Strenght Index (RSI) at bullish territory and price action above the simple moving averages (SMAs), and a break of a three-week-old downslope trendline around 0.9775 further cement the upward bias.

Hence, the USD/CHF first ceiling level will be the R1 daily pivot at 0.9630. A breach of the latter will expose the July 1 daily high at 0.9641, followed by the R2 daily pivot point at 0.9652.

USD/CHF Key Technical Levels

USD/CHF

Overview
Today last price	0.9609
Today Daily Change	0.0014
Today Daily Change %	0.15
Today daily open	0.9596

Trends
Daily SMA20	0.9709
Daily SMA50	0.9736
Daily SMA100	0.9522
Daily SMA200	0.937

Levels
Previous Daily High	0.9642
Previous Daily Low	0.9543
Previous Weekly High	0.9642
Previous Weekly Low	0.9495
Previous Monthly High	1.005
Previous Monthly Low	0.9495
Daily Fibonacci 38.2%	0.9604
Daily Fibonacci 61.8%	0.9581
Daily Pivot Point S1	0.9546
Daily Pivot Point S2	0.9495
Daily Pivot Point S3	0.9447
Daily Pivot Point R1	0.9644
Daily Pivot Point R2	0.9692
Daily Pivot Point R3	0.9743

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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