- The USD/CHF tumbling below the 100-day EMA could pave the way for a re-test of 0.9470.
- In the near term, the USD/CHF is neutral downwards, and once it clears 0.9550, it could open the door toward 0.9500.
The USD/CHF retraces under the 100-day EMA and shifts the pair’s bias to neutral-downwards as the exchange rate further separates from the previously mentioned moving average (MA) and closes to the August 3 daily low at 0.9542. At the time of writing, the USD/CHF is trading at 0.9655.
USD/CHF Price Analysis: Technical outlook
From a daily chart perspective, the USD/CHF is neutral-to-downward biased reinforced for several reasons. Firstly, the exchange rate is below the 20, 50, and 100-DMAs. Secondly, the Relative Strength Index (RSI) is in negative territory, made a U-turn, from aiming higher, now is headed downwards, narrowing the distance with its 7-day RSI’s MA. Once the RSI crosses under the latter, it confirms the bearish bias.
Therefore, the USD/HF path of least resistance is downwards. The major’s first support would be 0.9542. Once broken, it will expose the 0.9500, followed by the August 2 low at 0.9470.
USD/CHF Hourly chart
The USD/CHF hourly chart illustrates the pair as neutral-to-downward biased. However, the confluence of the S1 daily pivot and the 100-hour EMA around 0.9550 stopped the downtrend at the time of typing. Nevertheless, USD/CHF traders should notice that the Relative Strength Index (RSI) exited from oversold conditions, with its slope aiming higher, so a correction might be on the cards. Therefore, the USD/CHF might aim toward Fibonacci’s 50% retracement at 0.9588 before cracking 0.9550. Once cleared, the major’s next support will be the August 1 daily low at 0.9470.
USD/CHF Key Technical Levels