USD/CHF Price Analysis: Reclaims the 20-DMA, as bull’s eye the 50-DMA around 0.9300

USD/CHF Price Analysis: Reclaims the 20-DMA, as bull’s eye the 50-DMA around 0.9300

  • USD/CHF jumped from weekly lows after forming a hammer at around the 0.9200 area.
  • Near-term, the USD/CHF is upward biased and might test the 0.9300 figure.

The USD/CHF forged a base and climbed back to the 0.9200 area on Friday, following Thursday’s price action, which formed a hammer, that exacerbated the USD/CHF recovery, to current exchange rates. At the time of writing, the USD/CHF is trading at 0.9246, above its opening price by 0.35%.

Long-term, the USD/CHF remains neutral-to-downward biased, but it could print a leg-up and test the 50-day Exponential Moving Average (EMA) at 0.9294. The Relative Strength Index (RSI) entered bullish territory, suggesting that buying pressure is building, contrary to the Rate of Change (RoC), which is neutral.

Short term, the USD/CHF 4-hour chart is bottoming, though downside risks remain. At the time of typing, the USD/CHF is testing the 200-Exponential Moving Average (EMA) at 0.9247 after breaking away from the confluence of the 50/100/20-EMAs.

Oscillators like the Relative Strength Index (RSI) shifted bullish, while the Rate of Change (RoC) backed a bullish continuation, but key resistance areas need to be broken to further cement the USD/CHF upward bias.

Therefore, the USD/CHF first resistance would be the 200-EMA, followed by the 0.9300 figure. A decisive break could trigger a leg-up towards the January 12 high of 0.9360, ahead of the psychological 0.9400 figure.

USD/CHF 4-hour chart

USD/CHF key technical levels

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Read More