USD/CHF Price Analysis: Bears moved in as ‘evening star’ pattern looms

• USD/CHF falls 0.16%, trading below 0.9100 due to broader US dollar weakness.
• Technicals show neutral to upward bias; recent bearish RSI indicates loss of upward momentum.
• Key support at 0.9006 (50-day MA and support trendline); resistance at 0.9100 and 0.9174.

The USD/CHF extended its losses for two straight days and is down some 0.16%, courtesy of broad US Dollar weakness, undermined by lower US Treasury yields. The major trades at 0.9064 after hitting a high shy of 0.9100.

USD/CHF Price Analysis: Technical outlook

The daily chart depicts the USD/CHF as neutral to upward biased, despite buyers losing momentum, as shown by the Relative Strength Index (RSI) shifting bearish. Although the pair has lost some 1.80% after hitting a year-to-date (YTD) high of 0.9224, solid support seen at the confluence of the 50-day moving average and a support trendline at around 0.9006/30 might cap the pair’s drop.

Looking at the potential for a bullish continuation, the USD/CHF could see a positive turn if it manages to climb above 0.9100. Once this level is breached, the next immediate resistance level to watch out for would be May 2 high at 0.9174, with a further test at 0.9200.

On the other hand, if bears push prices below 0.9000, that will confirm the ‘evening star’ chart pattern and exacerbate a drop toward the 200-DMA at 0.8887, ahead of the 100-DMA at 0.8829.

USD/CHF Price Action – Daily Chart