USD/CHF Price Analysis: The rally stalls at 0.9000 and retraces toward the 0.8950 area
- USD/CHF faces resistance at 0.9000 and falls for the first time in three days.
- USD/CHF Price Analysis: It might print a leg-up above 0.9000; otherwise, a bearish continuation would resume below 0.8900.
USD/CHF retreats after posting back-to-back days of gains, down 0.17%, after hitting a weekly high of 0.8996. At the time of writing, the USD/CHF exchanges hands at 0.8969, ahead of the Wall Street close.
USD/CHF Price Action
From a technical perspective, the USD/CHF daily chart portrays the major as downward biased, losing almost 3% annually. However, last Friday, the USD/CHF pair snapped three days of straight losses, forming a bullish piercing pattern that failed to extend above the psychological 0.9000 figure. Even though the USD/CHF is in a pullback, the Rate of Change (RoC) suggests that buyers are outpacing sellers, which could put into play a challenge of the 0.9000 figure.
If USD/CHF cracks the latter, that will expose the 20-day Exponential Moving Average (EMA) at 0.9065, followed by the 0.9100 mark. Once cleared, the USD/CHF could rally towards the 50-day EMA at 0.9164.
Conversely, a bearish continuation will resume once the USD/CHF breaks below 0.8921. A breach of the latter will expose the 0.8900 figure, followed by the YTD low at 0.8859.
USD/CHF Daily Chart
USD/CHF Technical Levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
