USD/CHF Price Analysis: Bounces from multi-month lows, approaching the 100-DMA
|- The USD/CHF stages recovery after hitting a four-month low at 0.9470.
- Sentiment remains negative, bolstering appetite for the greenback.
- In the long-term, the USD/CHF is neutral biased, but short-term is tilted upwards, opening the door for a test of the 0.9600 mark.
The USD/CHF rebounded from under the June 29 swing low at 0.9495 and climbed to the daily high at 0.9559s, amidst a sour market mood, on US-China tussles, while also Fed speakers continued to push back against the market’s reaction to the FOMC 75 bps rate hike. At the time of writing, the USD/CHF is trading at 0.9551, up 0.67%.
USD/CHF Price Analysis: Technical outlook
The USD/CHF is neutral biased on sellers’ failure to hold the exchange rate below 0.9495, which would have paved the way towards the 200-day EMA at 0.9412. Instead, the USD/CHF edged higher, forming a bullish-engulfing chart pattern, a reversal pattern indicating buyers outweigh sellers, keeping risks skewed to the upside. Besides, the Relative Strength Index (RSI) is about to cross over its 7-day RSI’s SMA, which would open the door for higher prices.
Therefore, the USD/CHF first ceiling level would be the 100-day EMA at 0.9614. Break above will expose the major for further upside. Otherwise, a breach under 0.9500 could send the pair towards 0.9412, the 200-day EMA.
USD/CHF 1-hour chart
The USD/CHF is neutral-upward biased but faced solid resistance at a fifteen-day-old downslope trendline, which capped the rally at 0.9559. However, with the spot price above the 20, 50, and 100-hour EMAs, alongside the Relative Strength Index (RSI) aiming higher. That could open the door for a USD/CHF re-test of 95.60, which would lift the major towards the 200-hour EMA at 0.9592.
USD/CHF Key Technical Levels
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.