USD/CHF Price Analysis: Risk-on impulse supports more weakness

The USD/CHF pair is likely to continue its downside journey below the immediate support of 0.9267 as investors have underpinned the risk-appetite theme in the market. The Swiss Franc asset has sensed significant barricades around 0.9280, which might infuse more pressure on the US Dollar ahead.

The US Dollar Index (DXY) is looking to re-test its six-month low around 103.05 amid risk-on profile as the Federal Reserve (Fed) is expected to slow down its pace of hiking interest rates after the release of the downbeat United States Average Hourly Earnings data.

The formation of a Double Top chart pattern on a four-hour scale around 0.9400 triggered immense selling pressure on USD/CHF. The aforementioned chart pattern indicates a failed attempt of exploring a fresh upside due to weak buying interest. Also, the 200-period Exponential Moving Average (EMA) around 0.9377 is acting as a major barricade for the US Dollar.

It is worth noting that the Relative Strength Index (RSI) (14) has faced barricades in shifting into the 60.00-80.00 range, which indicates that the upside bias is not solid anymore.

For further downside, the Swiss Franc bulls need to push the asset below December 30 low around 0.9200, which will drag the asset towards March 1 low at 0.9150 followed by January 21 low at 0.9108.

On the flip side, a decisive break above January 6 high at 0.9410 will drive the major towards December 6 high at 0.9456. A breach above the latter will send the major to psychological resistance around 0.9500.

USD/CHF four-hour chart