USD/CHF Price Analysis: Fails at 0.9000, dips below key support levels amidst fading selling pressure

USD/CHF drops below key 0.90 level, extending losses as sellers eye a test of the 0.8900 mark.
Despite losses, fading selling pressure indicated by RSI and positive three-day RoC signals potential recovery.
If breached, initial resistance at 20-day EMA opens path to 50-day EMA at 0.9007 and beyond.

Christian Borjon Valencia FXStreet

USD/CHF fails to decisively crack the 50-day Exponential Moving Average (EMA) at 0.9007, drops beneath the 0.90 figure, and extends its losses below technical support levels, as sellers see a test of the 0.8900 mark. At the time of writing, the USD/CHF trades at 0.8947, down 0.51%.

USD/CHF Price Analysis: Technical outlook

The USD/CHF is neutral to downward biased, as price action remains constrained within the 0.89/0.90 area for the last two trading weeks. The Relative Strength Index (RSI) indicator portrays sellers in charge, but it should be said the RSI has printed higher throughs, suggesting selling pressure is fading. In the meantime, the three-day Rate of Change (RoC) remains positive despite the USD/CHF is printing losses.

If USD/CHF continues to edge lower, the first support would be 0.8900. A breach of the latter will expose the year-to-date (YTD) low of 0.8819. Conversely, if buyers reclaim the 20-day EXMA at 0.8979, that will expose the 50-day EMA at 0.9007. Once cleared, the next resistance would be the 100-day EMA at 0.9080 before challenging the 0.9100 mark.

USD/CHF Price Analysis: Price Action – Daily chart

USD/CHF

Overview
Today last price	0.8947
Today Daily Change	-0.0047
Today Daily Change %	-0.52
Today daily open	0.8994

Trends
Daily SMA20	0.9001
Daily SMA50	0.898
Daily SMA100	0.9088
Daily SMA200	0.9309

Levels
Previous Daily High	0.9002
Previous Daily Low	0.8944
Previous Weekly High	0.9013
Previous Weekly Low	0.8907
Previous Monthly High	0.9148
Previous Monthly Low	0.882
Daily Fibonacci 38.2%	0.898
Daily Fibonacci 61.8%	0.8966
Daily Pivot Point S1	0.8957
Daily Pivot Point S2	0.8921
Daily Pivot Point S3	0.8899
Daily Pivot Point R1	0.9016
Daily Pivot Point R2	0.9038
Daily Pivot Point R3	0.9074

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.

AUD/USD hangs near three-week low, above 0.7100 ahead of Fed decision

AUD/USD retains its negative bias for the third straight day, trading around 0.7120 and close to a three-week low during the Asian session on Wednesday. The US Dollar stands firm near a two-week high as the anticipated Fed rate hike and oil-driven inflation fears continue to push US bond yields to a multi-year high. Furthermore, escalating Middle East tensions benefit the safe-haven buck and weigh on the risk-sensitive Aussie.

USD/JPY remains below 155.50 as bulls await the key Fed decision

USD/JPY climbs to a fresh one-week high during the Asian session on Wednesday amid a bullish US Dollar. Oil-driven inflation fears, along with the anticipated Fed rate hike, continue to support surging US bond yields. Moreover, rising US-Iran tensions underpin the USD's reserve currency status. Spot prices, however, remain below the mid-155.00s as bulls seem hesitant ahead of the Fed decision later today and the BoJ meeting, starting on Thursday.

Gold struggles below $4,300, near one-month low as Fed decision looms

Gold remains depressed below $4,300 during the Asian session on Wednesday as traders look to the crucial Fed decision for a fresh impetus. Meanwhile, a surge in US bond yields, bolstered by oil-driven inflation fears, continues to weigh on the non-yielding bullion. Furthermore, escalating Middle East tensions underpin the safe-haven US Dollar and contribute to a weaker tone around the XAU/USD.

Ethereum continues to attract capital despite impending rate hike and Clarity Act failure

Ethereum declined to $2,400 on Tuesday after the Clarity Act failed to progress in the Senate. Despite that and the market's near certainty of an interest rate hike at the next Federal Reserve (Fed) meeting, the top altcoin has continued to attract fresh capital. Ethereum buyers have been dominating sellers over the past few days.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.