- USD/CHF falls below the key 0.90 level and extends its losses as sellers try to reach 0.8900.
- Despite the losses, the disappearance of the selling pressure indicated by the RSI and the positive three-day RoC signal a possible recovery.
- If broken, initial resistance at the 20-day EMA opens the way to the 50-day EMA at 0.9007 and beyond.
USD/CHF fails to decisively break above the 50-day EMA at 0.9007, dips below the 0.90 figure and extends losses below technical support levels as sellers look a test of the 0.8900 signal. At the time of writing these lines, USD/CHF is trading at 0.8947, down 0.51%.
USD/CHF Price Analysis: Technical Perspective
USD/CHF has a neutral bias to the downside as price action remains capped within the 0.89/0.90 zone for the past two weeks of trading. The Relative Strength Index (RSI) shows sellers in command, but it must be said that the RSI has printed highs, which suggests that the selling pressure is subduing. Meanwhile, the three-day exchange rate (RoC) remains positive despite the fact that USD/CHF is printing losses.
If USD/CHF continues to fall, the first support would be 0.8900. A break of the latter would expose the year-to-date (YTD) low of 0.8819. Conversely, if the buyers recapture the 20-day EMA at 0.8979, the 50-day EMA at 0.9007 would be exposed. Once broken, the next resistance would be the 100 day EMA at 0.9080 before challenging 0.9100.
USD/CHF Price Analysis: Price Action – Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
