USD/CHF Price Analysis: Bounces off 100 DMA but struggles around 0.9650

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  • USD/CHF got a bid ahead of the FOMC meeting with mixed sentiment.
  • From a medium-term perspective, USD/CHF has a bullish bias; could retest 0.9900.
  • USD/CHF Price Analysis: A bearish pennant has emerged which, once broken, would see the pair drop towards 0.9580.

The USD/CHF is rebounding from last week’s low and 100-day moving average (DMA) at 0.9600, and up on mixed sentiment, with US equities fluctuating, as traders brace for policy decision Federal Reserve monetary policy on Wednesday. At the time of writing, USD/CHF is trading at 0.9652, with a slight gain of 0.37%.

USD/CHF Price Analysis: Technical Outlook

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From a daily chart point of view, USD/CHF continues to have a bullish bias as buyers stepped in around 0.9600 and pushed the exchange rate towards Monday’s daily high of 0.9660. However, since June, USD/CHF has been range bound within the 0.9500-0.9900 zone, so a break above the 50-DMA at 0.9698 would put a move to the 18 Jul high in play. at 0.9789 before challenging 0.9900.

USD/CHF 1 hour chart

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USD/CHF remains neutrally biased to the downside, with hourly SMAs above the exchange rate. The oscillators, although showing positive readings, the RSI is about to cross below its 7-period SMA, which would open the door for further losses. USD/CHF traders should note that a bearish pennant has formed, which once broken, would pave the way for a drop below 0.9600.

If this scenario is about to play out, the first support for USD/CHF would be the daily pivot at 0.9640. A breakout of the latter would immediately expose the trend line of a bearish pennant. Once broken, the next support would be 0.9600. A decisive break would expose the bearish pennant target around the 0.9575-80 zone.

Technical levels


Last Price Today 0.9651
Today’s Daily Change 0.0038
Today’s Daily Change % 0.40
Today’s Daily Opening 0.9613
20 Daily SMA 0.9693
50 Daily SMA 0.9711
100 Daily SMA 0.9601
200 Daily SMA 0.9404
Previous Daily High 0.9704
Previous Daily Minimum 0.96
Previous Maximum Weekly 0.979
Previous Weekly Minimum 0.96
Monthly Prior Maximum 1,005
Previous Monthly Minimum 0.9495
Daily Fibonacci 38.2% 0.964
Daily Fibonacci 61.8% 0.9664
Daily Pivot Point S1 0.9574
Daily Pivot Point S2 0.9534
Daily Pivot Point S3 0.9469
Daily Pivot Point R1 0.9678
Daily Pivot Point R2 0.9743
Daily Pivot Point R3 0.9783

Source: Fx Street

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