USD/CHF Price Analysis: Pokes 50-SMA hurdle below 0.9400 ahead of Swiss inflation release
06.03.2023, 02:30

USD/CHF Price Analysis: Pokes 50-SMA hurdle below 0.9400 ahead of Swiss inflation release

  • USD/CHF picks up bids to pare the biggest daily loss in a month.
  • Bearish MACD signals, 50-SMA challenge recovery moves after snapping two-week uptrend.
  • One-month-old ascending support line, 100-SMA lures sellers during fresh declines.

USD/CHF struggles to defend the corrective bounce from 0.9360 as it jostles with the 50-SMA resistance during early Monday. In doing so, the Swiss currency pair portrays the cautious mood ahead of February’s Consumer Price Index (CPI) data from Switzerland, expected 2.9% YoY versus 3.3% previous readings.

Apart from the pre-data caution, the bearish MACD signals and a one-week-old horizontal resistance near 0.9430 also challenge the USD/CHF buyers.

Following that, the monthly high surrounding 0.9440 can act as a validation point for the rally targeting a late November 2022 swing high of near the 0.9600 threshold.

On the flip side, the 23.6% Fibonacci retracement of the pair’s February month upside, near 0.9350 restricts the immediate downside of the USD/CHF pair.

Even if the quote remains weak past 0.9350, an upward-sloping support line from early February and the 100-DMA, respectively near 0.9340 and 0.9300, may act as the last defense of the USD/CHF buyers.

Should the pair trade southwards past 0.9300, lows marked during February 2023, around 0.9135 and 0.9060, will be in focus.

Overall, USD/CHF is likely to remain on the bear’s radar unless the quote remains successfully above 0.9430.

USD/CHF: Four-hour chart

Trend: Further downside expected

 

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