- Widespread US dollar weakness a headwind for USD/CHF.
- A falling wedge on the daily chart for USD/CHF suggests that the pair could break out.
- USD/CHF: A break below 0.9326 could pave the way towards 0.9300; otherwise, a recovery towards 0.9400 is expected.
The USD/CHF continues to lose ground for two consecutive sessions, with a minimum fall of 0.22%, after reaching a daily maximum of 0.9437. At the time of writing, USD/CHF is trading at 0.9396, while the Dollar Index (DXY) is down 0.51%.
USD/CHF Price Analysis: Technical Perspective
From a daily chart perspective, the USD/CHF daily chart suggests that the pair is biased to the downside. Since mid-November, the USD/CHF has formed a falling wedge, a bullish continuation chart pattern, which appeared, following the massive swing from around the 2022 highs at 1.0147, towards last week’s lows at 0.9326. Therefore, USD/CHF could consolidate between the limits of the wedge before breaking higher/lower.
Oscillators are giving mixed signals, with the Relative Strength Index (RSI) pointing lower, while the Rate of Change (RoC) portrays the selling pressure easing. Unless USD/CHF breaks below 0.9326 and challenges to break the wedge to the downside, this could set the stage for a test of 0.9300.
As an alternative scenario, the first resistance of the USD/CHF would be 0.9400, followed by the daily low of September 13 at 0.9479, followed by the upper trend line of the wedge at 0.9505, and the 20-day EMA. at 0.9510.
Key technical levels for USD/CHF
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.
