USD/CHF Price Analysis: Edges higher past 100-DMA hurdle surrounding 0.8880
- USD/CHF seesaws at the highest level in two months, lacks momentum of late.
- Nearly overbought RSI prods Swiss Franc pair buyers but 100-DMA breakout, bullish MACD signals favor the pair’s upside moves.
- Previous resistance line from March, seven-week-old rising support line adds to the downside filters.
- US ISM Services PMI, risk catalysts eyed for clear directions.
USD/CHF retreats to 0.8895 after refreshing a two-month high the previous day, mostly unchanged during early Wednesday. In doing so, the Swiss Franc (CHF) pair portrays the market’s cautious mood ahead of the US ISM Services PMI for August and the final readings of the US S&P Global PMIs for the said month.
That said, a daily closing beyond the 100-DMA, around 0.8875 at the latest, joins the bullish MACD signals to keep the USD/CHF buyers hopeful despite the latest inaction.
Apart from the 100-DMA, the previous resistance line from March, surrounding 0.8810, as well as a seven-week-old rising support line of around .8770 will also challenge the USD/CHF pair sellers before giving them control.
It’s worth noting, however, that the overbought RSI suggests the pullback moves of the USD/CHF pair but the downside room appears limited.
On the contrary, the 0.9000 psychological magnet and late June swing high of around 0.9015 lure the short-term USD/CHF pair buyers ahead of the 200-DMA hurdle of 0.9057.
Following that, a descending resistance line from November 2022, near 0.9165 at the latest, will check the USD/CHF bulls prior to highlighting the yearly high marked in March around 0.9440.
USD/CHF: Daily chart
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Trend: Pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
