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

The Swiss Franc asset has sensed significant barricades around 0.9280 amid a risk-appetite theme.
A Double Top formation indicates a failed attempt of exploring fresh upside.
The RSI (14) is failing to shift into the bullish range of 60.00-80.00.

Sagar Dua FXStreet

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

USD/CHF

Overview
Today last price	0.927
Today Daily Change	-0.0007
Today Daily Change %	-0.08
Today daily open	0.9277

Trends
Daily SMA20	0.9297
Daily SMA50	0.9474
Daily SMA100	0.9644
Daily SMA200	0.9645

Levels
Previous Daily High	0.941
Previous Daily Low	0.927
Previous Weekly High	0.941
Previous Weekly Low	0.9223
Previous Monthly High	0.9471
Previous Monthly Low	0.9201
Daily Fibonacci 38.2%	0.9324
Daily Fibonacci 61.8%	0.9356
Daily Pivot Point S1	0.9228
Daily Pivot Point S2	0.918
Daily Pivot Point S3	0.9089
Daily Pivot Point R1	0.9367
Daily Pivot Point R2	0.9458
Daily Pivot Point R3	0.9506

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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