USD/CHF Price Analysis: Technical setup points to more pain below 0.9700

USD/CHF is flirting with monthly lows below 0.9700 as DXY sinks.
Risk-off flows dominate amid China and Europe's optimism.
The pair eyes more downside as daily RSI pierces into the negative zone.

Dhwani Mehta FXStreet

USD/CHF is back in the red this Monday after Friday’s temporary reversal, as bears track the unrelenting decline in the US dollar across the board.

Optimism that loosening lockdowns in China could help global growth and an unexpected improvement in the German business morale lifted the overall market mood and weighed heavily on the safe-haven US dollar.

The dollar also takes the hit from the pre-FOMC minutes investors’ repositioning, shrugging off the rebound in the US Treasury yields.

From a short-term technical perspective, USD/CHF has breached the 0.9700 support once again, with more losses likely in the offing, as the 14-day Relative Strength Index (RSI) has crossed the midline for the downside.

Daily closing below that level is needed to validate the downside break from the horizontal trendline support that defended the pair in early February.

The upward-sloping 50-Daily Moving Average (DMA) at 0.9553 will be tested if bears refuse to give up control in the near term.

USD/CHF: Daily chart

On the flip side, if bulls fight back control, managing to resist above 0.9700, then a brief rebound towards the 0.9750 psychological level cannot be ruled out.

Further up, USD/CHF buyers could aim for the ascending 21-DMA once again, now at 0.9822.

Note that the previous week’s downward spiral yielded a daily closing below the 21-DMA for the first time since April 11.

USD/CHF: Additional levels to consider

USD/CHF

Overview
Today last price	0.9690
Today Daily Change	-0.0057
Today Daily Change %	-0.58
Today daily open	0.9747

Trends
Daily SMA20	0.983
Daily SMA50	0.9548
Daily SMA100	0.9381
Daily SMA200	0.9297

Levels
Previous Daily High	0.9764
Previous Daily Low	0.9694
Previous Weekly High	1.0064
Previous Weekly Low	0.9694
Previous Monthly High	0.9759
Previous Monthly Low	0.9221
Daily Fibonacci 38.2%	0.9737
Daily Fibonacci 61.8%	0.9721
Daily Pivot Point S1	0.9706
Daily Pivot Point S2	0.9665
Daily Pivot Point S3	0.9636
Daily Pivot Point R1	0.9776
Daily Pivot Point R2	0.9805
Daily Pivot Point R3	0.9847

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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