USD/CHF Price Analysis: Buyers step in and lift pair on sellers’ failure at double top

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  • USD/CHF ends the week with decent gains of 0.39%.
  • Risk aversion dominates the session on Friday, as it has throughout the week.
  • USD/CHF double top on the daily chart is still in play but failure at 0.9544 paves the way for further gains as buyers eye 0.9700.
  • In the short term, the major has a bullish bias, with an eye on the 100 DMA.

The USD/CHF accelerates and recovers the 0.9600 level after the damaging US economic data, which shows that the economy, although expanding, is doing so at a slower pace than estimated in the middle of a tightening cycle of the Federal Reserve of US At the time of writing, the USD/CHF is trading at 0.9624.

US equities are falling, preparing to end the week with significant losses. Meanwhile, US Treasury yields have recovered some ground, while the USD remains the protagonist, as shown by the dollar index, which is up 0.58% at 105.340.

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USD/CHF daily chart

USD/CHF has regained some composure and is trading near the week’s highs around 0.9641. USD/CHF traders should note that sellers failed to break below the 100-day moving average (DMA) at 0.9518, exposing the pair to additional buying pressure. Also, the Relative Strength Index (RSI) at 46 pointed higher and broke above the 7-day moving average of the RSI, which means that the buying pressure is increasing.

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Therefore, the first resistance of the USD/CHF would be 0.9641. If it breaks above, the 0.9700 level would be exposed, followed by the 50 day moving average at 0.9732.

USD/CHF 1 hour chart

On the 1 hour chart, USD/CHF found its bottom around 0.9500 on June 29, and since then, has not looked back, making successive sets of higher lows and higher highs, paving the way for further gains. It should be noted that the major on its way north broke above the simple moving averages (SMAs), further solidifying the case for a rally to the upside.

Therefore, the first resistance for USD/CHF will be the R2 daily pivot at 0.9640. A break of the latter would expose the June 23 high at 0.9678, followed by 0.9700.

Key USD/CHF Technical Levels


Last Price Today 0.9599
Today’s Daily Change 0.0052
Today’s Daily Change % 0.54
Today’s Daily Opening 0.9547
20 Daily SMA 0.9711
50 Daily SMA 0.9736
100 Daily SMA 0.9519
200 Daily SMA 0.9368
Previous Daily High 0.9605
Previous Daily Minimum 0.953
Previous Maximum Weekly 0.9713
Previous Weekly Minimum 0.9522
Monthly Prior Maximum 1,005
Previous Monthly Minimum 0.9495
Daily Fibonacci 38.2% 0.9559
Daily Fibonacci 61.8% 0.9576
Daily Pivot Point S1 0.9516
Daily Pivot Point S2 0.9485
Daily Pivot Point S3 0.9441
Daily Pivot Point R1 0.9592
Daily Pivot Point R2 0.9636
Daily Pivot Point R3 0.9667

Source: Fx Street

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