USD/CHF Price Analysis: Retreats towards one-week-old support near 0.9250
22.02.2023, 05:15

USD/CHF Price Analysis: Retreats towards one-week-old support near 0.9250

  • USD/CHF pares the biggest daily gains in three weeks by reversing from golden Fibonacci ratio.
  • Multiple trend lines, 200-SMA stand tall to challenge downside move, RSI conditions also suggest further grinding towards the north.
  • Buyers seem to have a smooth road ahead of 0.9350 hurdle.

USD/CHF seesaws around 0.9265 as it consolidates the previous day’s gains with mild losses heading into Wednesday’s European session. In doing so, the Swiss Franc (CHF) pair makes a U-turn from the 61.8% Fibonacci retracement level, also known as the golden Fibonacci ratio, to pare the biggest daily jump since early February.

Even so, the most steady RSI (14), above 50, joins the bullish MACD signals, despite being sluggish of late, to keep the USD/CHF buyers hopeful.

That said, a one-week-old ascending trend line restricts the immediate downside of the USD/CHF pair near 0.9245.

Following that, the 50% Fibonacci retracement level and the 200-SMA could probe the bears around 0.9235 and 0.9220 in that order.

It’s worth noting that an upward-sloping support line from February 01, close to 0.9185 at the latest, appears the last defense of the USD/CHF bulls.

On the flip side, a clear break of the aforementioned key Fibonacci retracement level of 0.9275 could quickly propel the USD/CHF prices toward the 0.9300 round figure before highlighting the latest swing top near 0.9335.

Though, multiple hurdles near 0.9350 seem to challenge the USD/CHF pair’s upside past 0.9335, a break of which could easily challenge the previous monthly high surrounding 0.9490.

USD/CHF: Four-hour chart

Trend: Further upside expected

 

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