USD/CHF Price Analysis: Surrenders the 200-DMA as sellers eye 0.9200
- USD/CHF broke below the 200-DMA, ending the major’s upward bias.
- In the near term, the USD/CHF is neutral to downwards, but buyers reclaiming 0.9450 exerts upward pressure on the major.
The USD/CHF stumbles for the sixth consecutive day and breaks support provided by the 200-DMA at 0.9427, shifting the major’s bias downwards, with sellers reclaiming the latter, extending the USD/CHF losses in the week to 2.17%. At the time of writing, the USD/CHF is trading at 0.9408.
USD/CHF Price Analysis: Technical outlook
From a daily chart perspective, although breaking below the 200-day EMA, the USD/CHF risks are skewed to the upside. Thursday’s price action formed a hammer, preceded by a downtrend. That said, the major might re-test the 200-day EMA as a resistance level. If the latter holds, that could pave the way towards the March 31 low at 0.9194.
Zooming into the one-hour scale, the USD//CHF chart portrays the pair as neutral-to-downwards, but a positive divergence between the RSI and price action suggests an upward correction is on the cards. If that scenario plays out, the USD/CHF first resistance would be the confluence of the 50-hour EMA and the R1 pivot at 0.9447. Break above will expose the R2 daily pivot at 0.9484, followed by 0.9500.
USD/CHF Key Technical Levels
Author
Christian Borjon Valencia
FXStreet
Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.
