- The Swiss Franc is trading with decent gains of 0.20% against the US Dollar.
- USD/CHF is range bound around 0.9300-0.9630 due to the lack of a catalyst.
- USD/CHF Price Analysis: A double bottom has emerged around 0.9350, with the target of a recovery towards 0.9800.
The USD/CHF It pulls back from weekly highs around 0.9540 and falls towards the 0.9500 figure, due to mixed sentiment ahead of US Federal Reserve (Fed) Chairman Jerome Powell’s scheduled speech. At the time of writing, USD/CHF is trading at 0.9516, down 0.23% from its opening price.
USD/CHF Price Analysis: Technical Perspective
The daily chart for USD/CHF shows the pair with a bearish bias after dipping below the 200 day EMA. However, USD/CHF has failed to break above the August 22 low at 0.9474, which has exacerbated a consolidation within 0.9350-0.9600, just below the current location of the 200 day EMA at 0.9636.
Notably, USD/CHF tested the 0.9350 price level twice, representing a double bottom formation, which would point to a recovery towards 0.9800. However, to validate the pattern, USD/CHF needs to break above 0.9650, which would exacerbate a rally towards 0.9700 and beyond.
Therefore, the first resistance of the USD/CHF would be 0.9600. Breaking above will expose the 200 day EMA at 0.9636, followed by the 38.2% fibonacci retracement at 0.9659, ahead of the 0.9700 figure. Once broken, the next line of defense for sellers would be the key psychological 0.9800 level.
USD/CHF Price Analysis: Technical Perspective
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.
