USD/CHF Price Analysis: Struggles to extend recovery above 0.9140-0.9160 supply zone

USD/CHF is facing barricades in stretching its recovery move above the 0.9140-0.9160 supply zone.
A hawkish commentary from SNB Chairman failed to strengthen the Swiss Franc bulls.
The RSI (14) is struggling to scale into the bullish range of 60.00-80.00.

Sagar Dua FXStreet

The USD/CHF pair has rebounded after a corrective move to near 0.9115 in the early Asian session. The Swiss franc asset is struggling to stretch an upside rally further as the US Dollar Index (DXY) has turned sideways ahead of the United States Nonfarm Payrolls (NFP) data.

Meanwhile, a hawkish commentary from Swiss National Bank (SNB) Chairman Thomas J. Jordan failed to strengthen the Swiss Franc bulls. SNB’s Jordan confirmed more interest rate hikes as inflationary pressures are stronger than the central bank can tolerate. The SNB is ready to be active in currency markets when necessary.

S&P500 futures have dropped sharply in the Asian session after a three-day winning spell, portraying a sheer decline in investors’ risk appetite. The 10-year US Treasury yields have dropped below 3.40%.

USD/CHF displayed a stellar recovery after testing previous lows plotted from January 18 low at 0.9085 on an hourly scale. The recovery action was extremely solid as it pushed the asset above the 20-and 50-period Exponential Moving Averages (EMAs) at 0.9120 and 0.9130 respectively in no time.

The Swiss franc asset has reached near the supply zone in a 0.9140-0.9160 range. It would be optimal to observe the price action around the supply range before making any constructive position.

Also, the Relative Strength Index (RSI) (14) is struggling to scale into the bullish range of 60.00-80.00. An occurrence of the same will trigger the upside momentum.

For further upside, the major needs to deliver a confident move above the 0.9140-0.9160 supply zone, which will drive the asset toward January 18 high at 0.9246 followed by January 24 high at 0.9280.

On the flip side, a breakdown of Wednesday’s low at 0.9059 will drag the major toward 4 August 2021 low at 0.9018. A slippage below the latter will drag the asset further toward 10 May 2021 low at 0.8986.

USD/CHF hourly chart

USD/CHF

Overview
Today last price	0.9141
Today Daily Change	0.0006
Today Daily Change %	0.07
Today daily open	0.9135

Trends
Daily SMA20	0.9213
Daily SMA50	0.9292
Daily SMA100	0.9552
Daily SMA200	0.9622

Levels
Previous Daily High	0.914
Previous Daily Low	0.9059
Previous Weekly High	0.928
Previous Weekly Low	0.9158
Previous Monthly High	0.941
Previous Monthly Low	0.9085
Daily Fibonacci 38.2%	0.9109
Daily Fibonacci 61.8%	0.909
Daily Pivot Point S1	0.9083
Daily Pivot Point S2	0.9031
Daily Pivot Point S3	0.9003
Daily Pivot Point R1	0.9163
Daily Pivot Point R2	0.9191
Daily Pivot Point R3	0.9243

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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