USD/CHF Price Analysis: Reclaims the 20-DMA, as bull's eye the 50-DMA around 0.9300
10.02.2023, 19:41

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

 

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