USD/CHF Price Analysis: Jump from a fresh weekly low below 0.9400, buyers eye 0.9500

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  • The US dollar continues to be offered, except against the Swiss franc, as USD/CHF rises.
  • USD/CHF: A daily close above 0.9425 will pave the way for a test of 0.9500.

The US dollar (USD) is recovering slightly against the Swiss franc (CHF) after the release of the minutes of the November meeting of the Federal Reserve (Fed), which show the desire of policymakers to moderate interest rate hikes. Therefore, the USD/CHF tanked on Wednesday, but the story was different on Thursday. At time of writing, USD/CHF is trading at 0.9434, after hitting daily lows at 0.9387.

USD/CHF Price Analysis: Technical Perspective

The USD/CHF daily chart shows Thursday’s price action forming a hammer, a candlestick that appears as a reversal pattern. However, as with most technical analysis tools, this is only one piece of the puzzle as you will need further confirmation from Friday. The Relative Strength Index (RSI) shows that sellers are in control, but its slope is heading higher, indicating that they may be losing momentum. If USD/CHF achieves a daily close above 0.9425 on Wednesday, that could open the door for a retest of 0.9500. Otherwise, sellers outpace buyers and could push the pair towards 0.9400 before testing the November low at 0.9356.

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In the short term, the 4-hour chart for USD/CHF shows the main skewed to the downside once it broke above an uptrend line on Nov. 22, compounding the slide below 0.9500. On its way to a fresh weekly low below 0.9400, USD/CHF broke above the 50 EMA along with the daily pivot point at 0.9460. However, the USD/CHF S1 daily pivot at 0.9381 probed stiff support to break it, and the pair rose back above 0.9400.

Therefore, the first resistance for USD/CHF would be the daily pivot at 0.9460, followed by the 50 EMA at 0.9484, before the psychological signal at 0.9500. As an alternate scenario, USD/CHF first support would be 0.9400, followed by the S1 pivot level at 0.9381, before the November low of 0.9356.

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Key USD/CHF Technical Levels

USD/CHF

Overview
Last price today 0.9435
Today I change daily 0.0015
Today’s daily change in % 0.16
today’s daily opening 0.942
Trends
daily SMA20 0.9727
daily SMA50 0.9816
daily SMA100 0.9731
daily SMA200 0.9633
levels
previous daily high 0.9533
previous daily low 0.9412
Previous Weekly High 0.9558
previous weekly low 0.9357
Previous Monthly High 1.0148
Previous monthly minimum 0.9781
Daily Fibonacci of 38.2% 0.9459
Daily Fibonacci of 61.8% 0.9487
Daily Pivot Point S1 0.9377
Daily Pivot Point S2 0.9334
Daily Pivot Point S3 0.9256
Daily Pivot Point R1 0.9498
Daily Pivot Point R2 0.9576
Daily Pivot Point R3 0.9619

Source: Fx Street

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