USD/CHF Price Analysis: Jumps from new weekly low below 0.9400 as buyers eye 0.9500

The US Dollar (USD) stages a mild recovery against the Swiss Franc (CHF) following the release of the Federal Reserve (Fed) November meeting minutes, which showed policymakers’ desire to moderate interest-rate increases. Therefore, the USD/CHF tanked on Wednesday, but the story differed on Thursday. At the time of writing, the USD/CHF is trading at 0.9434 after traveling from its daily low of 0.9387.

USD/CHF Price Analysis: Technical outlook

The USD/CHF daily chart depicts Thursday’s price action forming a hammer, a candlestick that appears as a reversal pattern. Nevertheless, as with most technical analysis tools, that’s just one piece of the puzzle, as it will need further confirmation from Friday. The Relative Strength Index (RSI) shows sellers are in charge, but its slope aims upward, signaling that they might be losing momentum. If the USD/CHF achieves a daily close above Wednesday’s 0.9425, that could open the door for a re-test of 0.9500. Otherwise, sellers outweigh buyers could pressure the major towards 0.9400 before testing the November low at 0.9356.

In the near term, the USD/CHF 4-hour chart portrays the major as downward biased once it cleared an upslope trendline on November 22, exacerbating a drop below 0.9500. On its way toward a new weekly low below 0.9400, the USD/CHF surpassed the 50-Exponential Moving Average (EMA) alongside the daily pivot point at 0.9460. However, the USD/CHF S1 daily pivot at 0.9381 probed rigid support to break, and the major climbed back above 0.9400 toward the current spot price.

Therefore, the USD/CHF first resistance would be the daily pivot at 0.9460, followed by the 50-EMA at 0.9484, ahead of the psychological 0.9500 mark. As an alternative scenario, the USD/CHF first support would be 0.9400, followed by the S1 pivot level at 0.9381, ahead of November’s low at 0.9356.

USD/CHF Key Technical Levels