USD/CHF Price Analysis: Rebounds from 0.9125 with banking sector support boosting US dollar

Rollercoaster Ride: USD/CHF's volatility amidst global banking liquidity concerns.
USD/CHF finds support at 0.9125 as US authorities intervened.
Geopolitical tensions and US PCE data to influence USD/CHF movement.

USD/CHF managed to find support, and its downside fall was stalled at the 0.9125 level. This was due to some easing financial conditions in the US following the fallout from a regional bank and the contagion effect that spilled over to Europe. Concerns over Credit Suisse and a sudden spike in Deutsche Bank's credit default swap led to a rollercoaster ride for the market last week.

However, quick interventions and a strong willingness from US authorities to rescue the banking sector helped USD/CHF close on the green side last Friday.

Despite this, the downside bias for the pair remains intact, and any convincing break below the 0.9125 level will likely pave the way for the multi-test support line at 0.9068 on the daily time frame. The upside potential will likely remain capped by the 50-Day Moving Average (DMA), currently pegged around Wednesday's high at the 0.9250 level. A convincing break above this level will likely confront the pair with the 21-DMA, and breaking above both DMAs will lead USD/CHF towards the two-week high at 0.9333. The last line of support for sellers is seen at the 0.9446 mark, which is also a multi-month high.

The Relative Strength Index (RSI) signals lower lows, suggesting further downside room for the pair. All eyes will remain on Russia's deployment of nuclear weapons in Belarus, the upcoming US Personal Consumption Expenditure (PCE) for this week, and any further developments on the global banking liquidity front, as the US dollar will likely take its cue from them.

USD/CHF: Daily chart

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