USD/CHF Price Analysis: Dips 80 pips amidst a soft US Dollar

Fundamental news in the United States debilitated the US Dollar and boosted the Swiss Franc.
Oscillators like RSI and the Rate of Change suggests sellers are gathering momentum.
USD/CHF Price Analysis: Break below 0.9300 will exacerbate a fall to 0.9200.

Christian Borjon Valencia FXStreet

The USD/CHF extended its losses for two-straight days, courtesy of a gloomy economic outlook in the United States (US), as manufacturing activity shrank while the US Federal Reserve (Fed) tightened monetary conditions. Therefore, the US Dollar (USD) weakened, contrarily to the Swiss Franc (CHF). At the time of writing, the USD/CHF is trading at 0.9366, beneath its opening price by 0.92%.

USD/CHF Price Analysis: Technical outlook

The USD/CHF is dropping sharply, as shown in the daily chart. The 170-pip fall spurred by the Federal Reserve, slowing the speed of rate hikes, exacerbated the fall from around 0.9530s. Even though the USD/CHF dived sharply, oscillators, like the 9-period Rate of Change (ROC) and the Relative Strength Index (RSI) showed that sellers are gathering momentum, cementing the case for a bearish bias.

Therefore, the USD/CHF first support would be the November 15 daily low at 0.9356. A breach of the latter will expose the 0.9300 figure, followed by the April 12 daily low at 0.9286, ahead of the March 31 swing low of 0.9194.

As an alternate scenario, the USD/CHF first resistance would be 0.9400. Break above will pave the way towards the 20-day Exponential Movin Average (EMA) at 0.9545, but on its way up, the major needs to surpass the psychological 0.9500.

USD/CHF Key Technical Levels

USD/CHF

Overview
Today last price	0.9371
Today Daily Change	-0.0093
Today Daily Change %	-0.98
Today daily open	0.9464

Trends
Daily SMA20	0.9601
Daily SMA50	0.9799
Daily SMA100	0.9716
Daily SMA200	0.964

Levels
Previous Daily High	0.9548
Previous Daily Low	0.9432
Previous Weekly High	0.9598
Previous Weekly Low	0.9388
Previous Monthly High	1.0148
Previous Monthly Low	0.9357
Daily Fibonacci 38.2%	0.9476
Daily Fibonacci 61.8%	0.9503
Daily Pivot Point S1	0.9414
Daily Pivot Point S2	0.9365
Daily Pivot Point S3	0.9298
Daily Pivot Point R1	0.953
Daily Pivot Point R2	0.9597
Daily Pivot Point R3	0.9646

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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