USD/CHF Price Analysis: Plunges below 0.9000 ahead of the Fed decision
- USD/CHF slides below key technical support levels: 50 and 20-day EMAs.
- Bears target a May 22 swing low of 0.8940, with eyes on the psychological 0.8900 level.
- Oscillators RSI and RoC signal continued downward momentum.
USD/CHF nosedives ahead of the Federal Reserve’s (Fed) decision after falling below technical support levels, trading below the 0.9000 handle after reaching a daily high of 0.9060. At the time of writing, the USD/CHF is trading at 0.8969, down 0.90%.
USD/CHF Price Analysis: Technical outlook
The USD/CHF resumed its downward biased once it slid below the 50 and 20-day Exponential Moving Averages (EMAs), each at 0.9038 and 0.9033. After that, the USD/CHF extended its losses, surpassing the 0.9000 figure and falling to fresh three-week lows of 0.8965 before aiming for 0.8970. For a bearish continuation, the USD/CHF needs to clear the May 22 swing low of 0.8940, which would expose the 0.8900 psychological price level as the next support.
Conversely, USD/CHF buyers must reclaim the 0.9000 figure if they would like to see prices higher. That would open the door toward 0.9033/38, the confluence of the 20 and 50-day EMA, ahead of testing the intersection of the 100-day EMA and April 10 daily high at 0.9114/20.
Therefore, the USD/CHF trend remains downwards, supported by oscillators. The Relative Strength Index (RSI) and the three-day Rate of Change (RoC) remained in bearish territory.
USD/CHF Price Action – Daily chart
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
