- The USD/CHF downfall stalled around 0.9200 as a triple bottom emerged.
- A falling wedge and oscillator flashing selling pressure waning could pave the way for further upside in the USD/CHF.
- USD/CHF is poised for a break above 0.9300 as it eyes a test of the 20-day EMA.
The Swiss Franc (CHF) bounces at around 0.9200 and climbs toward 0.9250s amidst the North American session, which witnessed light liquidity conditions in the observance of 2023 new year’s eve. Therefore, the lack of US and Swiss economic data left traders adrift to market mood and technical. At the time of writing, the USD/CHF is trading at 0.9255, above its opening price by 0.15%.
USD/CHF Price Analysis: Technical outlook
The daily chart displays the pair as downward biased, but it also appears to have bottomed at around 0.9200. Since December, the USD/CHF pair’s inability to break below 0.9200, forming a triple bottom, opened the door for a leg-up, though low liquidity conditions since the last week keep the USD/CHF pair unable to test the 0.9300 figure. The Relative Strength Index (RSI) remains in bearish territory, capping any rallies toward 0.9300, while the Rate of Change (RoC) displays that selling pressure is waning.
Also, the USD/CHF is forming a falling wedge that it’s bullish. Therefore, the USD/CHF might test the 0/9300 figure, closely followed by a challenge of the 20-day Exponential Moving Average (EMA) at around 0.9319. The break above will expose the top-trendline of a descending channel around 0.9370, followed by the 0.9400 figure.
USD/CHF Key Technical Levels
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