USD/CHF Price Analysis: Tweezer Tops advocates a downside to near 0.9200
- The formation of the Tweezer Tops candlestick pattern has underpinned the Swiss franc against the greenback.
- The trendline placed from 2021’s low is providing a cushion to the asset.
- An oscillation range of 40.00-60.00 by the RSI (14) is advocating a consolidation phase.
The USD/CHF pair has witnessed a steep fall after failing to sustain above the previous weeks’ high at 0.9374. The pair has been dragged lower sharply to near 20-period Exponential Moving Average (EMA), which is trading at 0.9300.
On a daily scale, USD/CHF has formed a ‘Tweezer Tops’ candlestick pattern that signals a bearish reversal amid facing intense selling pressure for two consecutive trading sessions at similar highs. The asset has faced barricades at around 0.9374. The pair is comfortably holding above the 200-EMA, which is at 0.9225 but a single upside filter lacks confidence. The trendline placed from 2021’s low at 0.8758, adjoining the 2022’s low at 0.9092, will continue to act as major support for the asset.
Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in the 40.00-60.00 range, which signals a consolidation ahead.
A drop below the low of the Tweezer Tops formation at 0.9304 will drag the asset towards the March 9 low at 0.9250, followed by the round level support at 0.9200.
On the flip side, greenback bulls can dictate prices if the asset oversteps the previous week’s high at 0.9374. This will send the asset towards the round level resistance at 0.9400. Breach of the latter will drive the asset towards March’s high at 0.9460.
USD/CHF daily chart
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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.
