USD/CHF Price Analysis: Maintains position above 0.8850, barrier at nine-day EMA

USD/CHF halts a losing streak on the likelihood of further policy tightening by the Fed.
Nine-day EMA appears as the key barrier followed by the 0.8900 psychological level.
A break below the 0.8850 level could push the pair toward three-month lows.

Akhtar Faruqui FXStreet

USD/CHF snaps a three-day losing streak, edging higher near 0.8860 during the European session on Wednesday. The nine-day Exponential Moving Average (EMA) at 0.8892 emerges as the resistance aligned up with the psychological region at the 0.8900 level.

A breakthrough above the latter could open the doors for the USD/CHF pair to explore the next barrier around the 23.6% Fibonacci retracement at 0.8913 followed by the 0.8950 major level.

The Federal Open Market Committee (FOMC) meeting minutes on Tuesday suggested that additional monetary policy tightening may be necessary if new data does not reach the Federal Reserve's (Fed) inflation target, which may be the reason why the USD/CHF pair has gained strength. Until there is evident and consistent progress toward the Committee's inflation target, the Board resolved to stick to its strict stance.

However, the technical indicators for the USD/CHF pair support the current downward trend. The 14-day Relative Strength Index (RSI) below 50 indicates bearish sentiment, indicating that the pair is losing momentum.

Furthermore, the Moving Average Convergence Divergence (MACD) line is below the centerline, with divergence below the signal line, indicating that the USD/CHF pair could re-test the major support at the 0.8850 level. If there is a break below the level, the pair could navigate the area around the psychological level at 0.8800, nearing the three-month low at 0.8795.

USD/CHF: Daily Chart

USD/CHF: more technical levels to watch

Overview
Today last price	0.8856
Today Daily Change	0.0019
Today Daily Change %	0.22
Today daily open	0.8837

Trends
Daily SMA20	0.8975
Daily SMA50	0.9018
Daily SMA100	0.8897
Daily SMA200	0.8988

Levels
Previous Daily High	0.8852
Previous Daily Low	0.882
Previous Weekly High	0.9052
Previous Weekly Low	0.8853
Previous Monthly High	0.9244
Previous Monthly Low	0.8888
Daily Fibonacci 38.2%	0.8832
Daily Fibonacci 61.8%	0.8839
Daily Pivot Point S1	0.8821
Daily Pivot Point S2	0.8804
Daily Pivot Point S3	0.8788
Daily Pivot Point R1	0.8853
Daily Pivot Point R2	0.8868
Daily Pivot Point R3	0.8885

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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