- USD/CHF drop below the 100 day EMA could pave the way for a retest of 0.9470.
- In the short term USD/CHF is neutral to the downside and once it breaks above 0.9550 it could open the door towards 0.9500.
The USD/CHF pulls back below the 100-day EMA and changes the pair’s bias to neutral-bearish as the exchange rate breaks further away from the aforementioned moving average (MA) and approaches the daily low of Aug 3 in 0.9542. At the time of writing, the USD/CHF is trading at 0.9655.
USD/CHF Price Analysis: Technical Outlook
From a daily chart perspective, USD/CHF has a reinforced neutral to bearish bias for several reasons. First, the exchange rate is below the 20, 50, and 100 DMA. Second, the Relative Strength Index (RSI) is in negative territory, made a U-turn, from aiming higher, now it is heading lower, closing the distance with the MA of its 7-day RSI. Once the RSI crosses below the latter, the bearish bias is confirmed.
Therefore, the path of least resistance for USD/HF is to the downside. The first support of the major would be 0.9542. Once broken, it will expose 0.9500, followed by the August 2 low at 0.9470.
USD/CHF hourly chart
The USD/CHF hourly chart shows the pair with a neutral bias to the downside. However, the confluence of the daily pivot S1 and the 100 hourly EMA around 0.9550 stopped the downtrend at the time of writing. However, USD/CHF traders should note that the Relative Strength Index (RSI) has broken out of oversold conditions, with its slope pointing up, so a correction could be in store. Therefore, USD/CHF could head towards the Fibonacci 50% retracement at 0.9588 before breaking 0.9550. Once broken, the next support will be the daily low of 1st August at 0.9470.
Key USD/CHF Technical Levels
Source: Fx Street
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