USD/CHF Price Analysis: Focus on 0.9080 support as SNB rate hike looms
- USD/CHF remains depressed at one-week low during three-day losing streak.
- U-turn from 100-DMA, sustained observance of fortnight-old resistance line favor bears.
- Downbeat oscillators add strength to the south-run targeting seven-week-old support line.
- 50-DMA joins short-term resistance line to highlight 0.9255 as the key upside hurdle.
USD/CHF portrays a three-day downtrend at the lowest level in a week, down 0.25% intraday around 0.9155 heading into Thursday’s European session, as the pair sellers brace for the Swiss National bank (SNB) Interest Rate Decision.
Also read: USD/CHF keeps Fed inflicted losses below 0.9200 ahead of SNB Interest Rate Decision
In doing so, the Swiss Franc (CHF) pair sellers cheer the quote’s sustained trading below the fortnight-old descending resistance line, as well as a U-turn from the 100-DMA. It’s worth noting that the bearish MACD signals and the downbeat RSI (14), not oversold, also exert downside pressure on the USD/CHF prices.
Hence, the pair is well-set to decline towards a seven-week-old ascending support line, near 0.9080 by the press time.
However, the RSI conditions appear closer to the oversold territory and hence the USD/CHF pair’s weakness past 0.9080 becomes elusive.
Should the quote drops below 0.9080, the 0.9000 psychological magnet and the 61.8% Fibonacci Expansion (FE) of the pair’s moves between November 10, 2022, and March 03, 2023, around 0.8915, will gain the market’s attention.
Alternatively, a convergence of the 50-DMA and a two-week-old resistance line, near 0.9255 at the latest, restrict short-term USD/CHF upside ahead of the 100-DMA resistance surrounding 0.9335.
In a case where the Swiss pair buyers keep the reins past 0.9335, the monthly high of near 0.9440 could act as the last defense of the pair bears.
USD/CHF: Daily chart
Trend: Further downside 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.
