- USD/CHF has shown a solid recovery from below 0.9040 following the footprints of the USD Index.
- The appeal for the USD Index has improved amid the risk-off market mood.
- USD/CHF is marching towards the downward-sloping trendline of the Descending Triangle pattern plotted from 0.9148.
The USD/CHF pair has paused for a while after a solid recovery from below 0.9040 in the European session. The Swiss Franc asset is expected to extend its recovery move above the immediate resistance of 0.9070. The major is following the footprints of the US Dollar Index (DXY) which has refreshed its day’s high to near 104.10.
Losses in the S&P500 futures have increased further as investors are worried about the United States' economic prospects. The market participants have underpinned the risk aversion, which has improved the appeal of the US Dollar Index.
Meanwhile, investors are anticipating that the Swiss National Bank (SNB) will raise interest rates further as SNB Chairman Thomas J. Jordan told that the demerits of a highly inflated environment are higher than higher interest rates.
USD/CHF is marching towards the downward-sloping trendline of the Descending Triangle chart pattern plotted from May 31 high at 0.9148 on an hourly scale. The horizontal support of the aforementioned chart pattern is placed from June 02 low at 0.9035. The Descending Triangle formation indicates a volatility contraction that is followed an expansion in the same.
The Swiss Franc asset has sharply moved above the 20-period Exponential Moving Average (EMA) at 0.9062, which indicates that the short-term trend has turned bullish and the upside momentum is extremely strong.
Adding to that, the Relative Strength Index (RSI) (14) has rebounded into the 40.00-60.00 range from the bearish range of 20.00-40.00, portraying a bullish reversal.
Going forward, a decisive break above the intraday high at 0.9073 will drive the asset toward the round-level resistance of 0.9100 followed by March 28 low at 0.9137.
In an alternate scenario, a downside move below May 16 low at 0.8929 will drag the asset toward April 14 low at 0.8867. A slippage below April 14 low will further drag the asset toward May 04 low at 0.8820.
USD/CHF hourly chart
|Today last price||0.907|
|Today Daily Change||0.0008|
|Today Daily Change %||0.09|
|Today daily open||0.9062|
|Previous Daily High||0.912|
|Previous Daily Low||0.9052|
|Previous Weekly High||0.9148|
|Previous Weekly Low||0.9014|
|Previous Monthly High||0.9148|
|Previous Monthly Low||0.882|
|Daily Fibonacci 38.2%||0.9078|
|Daily Fibonacci 61.8%||0.9094|
|Daily Pivot Point S1||0.9037|
|Daily Pivot Point S2||0.9011|
|Daily Pivot Point S3||0.897|
|Daily Pivot Point R1||0.9104|
|Daily Pivot Point R2||0.9145|
|Daily Pivot Point R3||0.9171|
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.