USD/CHF Price Analysis: Firm at around 0.8950, eyeing EMA resistance level as bulls eye 0.9000
- USD/CHF hovers near 0.8950 and eyes 20-day and 50-day EMA resistance at 0.8988 and 0.9014.
- RSI nearing 50 midlines, suggesting potential bullish movement.
- Bearish continuation requires a break below 0.8900, revealing a YTD low of 0.8820.
USD/CHF trims some of its last Friday’s gains thought remains firm nearby 0.8950s after bouncing from daily lows reached early in the European session at around 0.8911. At the time of writing, the USD/CHF exchanges hands at 0.8952, down 0.17%, after failing to crack under the 0.8900 mark.
USD/CHF Price Analysis: Technical outlook
From a daily chart perspective, the USD/CHF remains neutral to downward biased but at the brisk of surpassing resistance levels like the 20 and 50-day Exponential Moving Averages (EMAs) at 0.8988 and 0.9014, respectively. Of note, the Relative Strength Index (RSI) indicator is closing into the 50-midline, which, once crossed, would trigger a buy signal. The three-day Rate of Change (RoC) depicts that buyers moved into the 0.8900 figure, as it prints its biggest gain, snapping three days of negative readings.
Therefore, the USD/CHF firsT resistance would be the 20-day EMA, followed by the 0.9000 figure. Break above will expose the 50-day EMA, followed by the 100-day EMA at 0.9090, ahead of 0.9100. On the flip side, the USD/CHF must break below 0.8900 for a bearish continuation, exposing the year-to-date (YTD) low of 0.8820, ahead of 0.8800.
USD/CHF Price Action – Daily chart
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
