- USD/CHF forms a bearish harami pattern, reversing from resistance at 0.9120 to the change around 0.9050.
- Despite a bullish RSI, the uptrend is weakening due to strong resistance from the 100 day EMA and weak US economic data.
- The risk of a daily close below the 20-day EMA at 0.9058 poses a potential challenge at 0.9000.
He USD/CHF paring some of Wednesday’s gains, forming a bearish two candlestick pattern at a juncture with resistance around the 0.9120 zone, capping the pair’s advance. Therefore, USD/CHF has pulled back below 0.9100 and changes hands around the 0.9050 area.
USD/CHF Price Analysis: Technical Perspective
Since the start of the week, USD/CHF has been oscillating above the 50-day EMA at 0.9034, which, acting as dynamic support, was seen by buyers as an area to open new positions as the USD/CHF hit a fresh two-month high around 0.9147. However, the uptrend faded as strong resistance emerged in the form of the 100-day EMA at 0.9127, along with the April 10 daily high at 0.9120.
Therefore, the poor US economic data was seen as an excuse for sellers to step in and drag USD/CHF towards daily lows at 0.9054, below the 20-day EMA at 0.9058. In the event of a daily close below the latter, the next stop would be the 50-day EMA at 0.9034 before challenging the 0.9000 figure.
Although price developments remain neutral, a short-term pullback is likely. But traders should be aware that the RSI is bullish, so upside risks remain.
USD/CHF 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.
