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USD/CHF: Recovers but remains below the 200 DMA

  • USD/CHF will end the week with losses of 2.05%.
  • From a daily chart perspective, the major is to the downside as sellers target the 31 Mar low below 0.9200.
  • Despite a positive divergence on the hourly chart, USD/CHF broke through the 200 DMA, but sellers piling on the 200 DMA dragged the pair lower.

The USD/CHF trimmed losses from Thursday but still below the 200 day EMA after making a daily high at 0.9450 but pulled back towards the current price level but still above the opening price. At the time of writing, USD/CHF is trading at 0.9418, up 0.13%.

Trader sentiment is upbeat as US equities are rising strongly. The greenback recovers some ground, as the US Dollar Index shows, rising 0.54% to 105.662, after an improvement in US consumer sentiment eased pressure from the Federal Reserve.

USDCHF Price Analysis: Technical Outlook

From a daily chart point of view, the USD/CHF pair is skewed to the downside, with the sellers remaining in control, despite the fact that the buyers lifted the pair towards its daily high. However, the Relative Strength Index (RSI) stands at 35.91, well below the mid-line of 50, thus a fall towards the March 31 low at 0.9194 is expected.

On the one hour timeframe, USD/CHF is showing a positive divergence with price action heading lower, while the RSI posts a successive series of higher lows. However, as the RSI has already crossed its 50 mid-line, higher and lately lower, the uptrend is in question, but unless the sellers break below the 11 Aug low of 0.9370, the largest could remain in a range.

The first resistance for USD/CHF will be the R1 daily pivot at 0.9447. If it breaks above, it could open the way towards 0.9500. On the other hand, if the pair breaks below 0.9400, it could drop towards 0.9370.

USD/CHF hourly chart

Technical levels

USD/CHF

Panorama
Last Price Today 0.9417
Today’s Daily Change 0.0006
Today’s Daily Change % 0.06
Today’s Daily Opening 0.9411
Trends
20 Daily SMA 0.9598
50 Daily SMA 0.9671
100 Daily SMA 0.9632
200 Daily SMA 0.9431
levels
Previous Daily High 0.9446
Previous Daily Minimum 0.9371
Previous Maximum Weekly 0.9652
Previous Weekly Minimum 0.9471
Monthly Prior Maximum 0.9886
Previous Monthly Minimum 0.9502
Daily Fibonacci 38.2% 0.94
Daily Fibonacci 61.8% 0.9417
Daily Pivot Point S1 0.9372
Daily Pivot Point S2 0.9334
Daily Pivot Point S3 0.9297
Daily Pivot Point R1 0.9448
Daily Pivot Point R2 0.9485
Daily Pivot Point R3 0.9524

Source: Fx Street

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