USD/CHF Price Analysis: Gains on strong US Dollar, oscillators are mixed ahead of Fed's decision


  • The USD/CHF could shift to a neutral bias if it reclaims the May 4 daily low of 0.8819, which converges with the 61.8% Fibonacci (Fibo) retracement level.
  • Resistance beyond this point lies at the confluence of the 50-day EMA and the 78.6% Fibo level at 0.8875/0.8900, followed by the 0.9000 mark.
  • USD/CHF's path of least resistance remains downward, with the 23.6% Fibo retracement at 0.8659 marking the level to beat for sellers.

USD/CHF rebounds from last Friday's lows of 0.8640 and climbs on a strong US Dollar (USD) amid a risk-on impulse as Wall Street prints solid gains. The USD/CHF is trading at 0.8683, gains 0.31%, after hitting low of 0.8637.

USD/CHF Price Analysis: Technical outlook

The USD/CHF is yet to turn neutral, even though it recovered some ground during the last three trading days, with the pair gaining 1.50%. Should be said, the USD/CHF could shift its bias to neutral if it reclaims the May 4 daily low of 0.8819, confluence with the 61.8% Fibonacci (Fibo) retracement.

If that ceiling level is broken, the next resistance would emerge at the next confluence of the 50-day EMA and the 78.6% Fibo level at 0.8875/0.8900 area, followed by the 0.9000 mark.

Nevertheless, the USD/CHF path of least resistance is downwards and will resume its downtrend once sellers drag prices below the 23.6% Fibo retracement at 0.8659. On further weakness, the USD/CHF could extend its losses past the 0.8600 figure, followed by the year-to-date (YTD) Low of 0.8554.

From an oscillator standpoint, the Relative Strength Index (RSI), aiming upwards, suggests the USD/CHF upward correction could continue, but as it remains in bearish territory, once turning flat, could pave the way for a reversal. Contrarily, the three-day Rate of Change (RoC) portrays buyers entering the market. That said, mixed signals could refrain USD/CHF traders from opening fresh positions ahead of the FOMC’s meeting.

USD/CHF Price Action – Daily chart

USD/CHF Daily chart

USD/CHF

Overview
Today last price 0.8687
Today Daily Change 0.0031
Today Daily Change % 0.36
Today daily open 0.8656
 
Trends
Daily SMA20 0.881
Daily SMA50 0.8934
Daily SMA100 0.9002
Daily SMA200 0.9218
 
Levels
Previous Daily High 0.8672
Previous Daily Low 0.8641
Previous Weekly High 0.8684
Previous Weekly Low 0.8555
Previous Monthly High 0.912
Previous Monthly Low 0.8902
Daily Fibonacci 38.2% 0.8653
Daily Fibonacci 61.8% 0.866
Daily Pivot Point S1 0.864
Daily Pivot Point S2 0.8625
Daily Pivot Point S3 0.8609
Daily Pivot Point R1 0.8672
Daily Pivot Point R2 0.8688
Daily Pivot Point R3 0.8704

 

 

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