USD/CHF Price Analysis: Struggles at 0.8800 amid mixed technical signals

• USD/CHF climbs by 0.20%, trading at 0.8780, but remains under the shadow of the 0.8800 resistance.
• The pair displays a ‘double-top’ chart pattern, suggesting potential downside movement.
• Key resistances to watch: 50-day EMA at 0.8811 and 100-day EMA at 0.8921.
• Immediate supports lie at the 20-day EMA at 0.8746 and the August 10 low of 0.8689.

The USD/CHF climbed modestly on Monday’s session though it failed to cling above the 0.8800 figure, which could weigh on the pair in the near term. Additionally, the USD/CHF failing to break a downslope resistance trendline drawn from November 2022 highs opened the door for further losses. The USD/CHF is trading at 0.8780, gains 0.20% but remains subject to selling pressure.

USD/CHF Price Analysis: Technical outlook

From a technical standpoint, the USD/CHF registered a ‘double-top’ chart pattern, which could pave the way for further downside, but mixed signals from an oscillator perspective could refrain sellers from lowering prices.

The Relative Strength Index (RSI) indicates that buyers are gathering momentum, while the three-day Rate of Change (RoC) depicts the USD/CHF as neutral.

If USD/CHF buyers reclaim 0.8800, they must reclaim the 50-day Exponential Moving Average (EMA) at 0.8811. A breach of the latter would expose the 100-day EMA at 0.8921.

Conversely, if USD/CHF sellers remain in control, the next support would be the 20-day EMA at 0.8746. Break below will expose the August 10 low of 0.8689, followed by the year-to-date (YTD) low of 0.8551.

USD/CHF Price Action – Daily chart