- The Swiss Franc trades with decent gains of 0.20% against the US Dollar.
- The USD/CHF is range-bound around 0.9300-0.9630 due to the lack of a catalyst.
- USD/CHF Price Analysis: Double bottom emerged around 0.9350, targeting a rally to 0.9800.
The USD/CHF retraces from weekly highs reached around 0.9540s, drops toward the 0.9500 figure, due to a mixed sentiment ahead of a scheduled speech by the US Federal Reserve (Fed) Chair Jerome Powell. At the time of writing, the USD/CHF is trading at 0.9516, below its opening price by 0.23%.
USD/CHF Price Analysis: Technical outlook
The USD/CHF daily chart portrays the pair as downward biased after plummeting below the 200-day EMA. However, the USD/CHF has failed to crack below the August 22 swing low at 0.9474, exacerbating a consolidation within 0.9350-0.9600, just below the current location of the 200-day EMA at 0.9636.
Of note, the USD/CHF tested the 0.9350 price level twice, depicting a double bottom formation, which would target a rally toward 0.9800. However, to validate the pattern, the USD/CHF needs to break above 0.9650, exacerbating a rally towards 0.9700 and beyond.
Therefore, the USD/CHF first resistance would be 0.9600. Break above will expose the 200-day EMA at 0.9636, followed by the 38.2% Fibonacci retracement at 0.9659, ahead of the 0.9700 figure. Once cleared, the sellers' next line of defense would be the psychological 0.9800 figure.
USD/CHF Price Analysis: Technical outlook
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