USD/CHF Price Analysis: Advances firmly, reclaims 0.9500
16.08.2022, 17:22

USD/CHF Price Analysis: Advances firmly, reclaims 0.9500

  • USD/CHF extends its weekly gains and erases last week’s losses, up by 1%.
  • The USD/CHF aims higher and could test the 20-day EMA; otherwise, further losses will extend towards 0.9400.

The USD/CHF climbs for the second straight day, widening the gap between the 200-day EMA and the exchange rate, courtesy of broad US dollar strength, underpinned by high US T-bond yields,  in the mid-North American session. At the time of writing, the USD/CHF is trading at 0.9501, up by 0.55%.

USD/CHF Price Analysis: Technical outlook

The USD/CHF is about to test the top-trendline of a descending channel. It’s worth noting that albeit a successive series of lower highs/lows confirm the pair is in a downtrend, sellers’ failure to capture the 200-day EMA at 0.9431 exposed the pair to buying pressure. Therefore, the USD/CHF edged higher, from around multi-month lows below 0.9400, towards current price levels.

If USD/CHF buyers would like to reclaim control, they need a break above the top trendline of the channel, which also intersects with the 20-day EMA at 0.9549. Once cleared, that would pave the way towards the 100-day EMA at 0.9631, followed by the 50-day EMA at 0.9651.

On the other hand, if the major tumbles and closes below 0.9500, that could pave the way for further losses. Hence, the USD/CHF first support would be the August 16 low at 0.8445, followed by the 200-day EMA at 0.9431 and the MTD low at 0.9370.


USD/CHF Daily chart

USD/CHF Key Technical Levels

 

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