- 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.
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
-638088183315363137.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD risks a deeper drop in the short term
AUD/USD rapidly left behind Wednesday’s decent advance and resumed its downward trend on the back of the intense buying pressure in the greenback, while mixed results from the domestic labour market report failed to lend support to AUD.
EUR/USD leaves the door open to a decline to 1.0600
A decent comeback in the Greenback lured sellers back into the market, motivating EUR/USD to give away the earlier advance to weekly tops around 1.0690 and shift its attention to a potential revisit of the 1.0600 neighbourhood instead.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Bitcoin price shows strength as IMF attests to spread and intensity of BTC transactions ahead of halving
Bitcoin (BTC) price is borderline strong and weak with the brunt of the weakness being felt by altcoins. Regarding strength, it continues to close above the $60,000 threshold for seven weeks in a row.
Is the Biden administration trying to destroy the Dollar?
Confidence in Western financial markets has already been shaken enough by the 20% devaluation of the dollar over the last few years. But now the European Commission wants to hand Ukraine $300 billion seized from Russia.