USD/CHF Price Analysis: Collapses below 20/50-DMAs once bears moved in at the 100-DMA
10.03.2023, 21:56

USD/CHF Price Analysis: Collapses below 20/50-DMAs once bears moved in at the 100-DMA

  • USD/CHF extended its drop past the 20/50-day EMAs after facing resistance at the 200-day EMA.
  • USD/CHF Price Forecast: Shifted bearish, though needs to crack 0.9130s to test YTD lows.

USD/CHF falls below the confluence of the 20 and 50-day Exponential Moving Averages (EMAs), extending its daily losses to more than 1% Friday. A mixed US jobs report weighed on the US Dollar (USD). Sentiment deteriorates on a US bank collapse, which could have spillover in the country. At the time of writing, the USD/CHF is trading at 0.9216.

USD/CHF Price Action

After dropping below the intersection of the 20 and 50-day EMAs, the USD/CHF shifted downwards. During the day, the pair reached a multi-week low of around 0.9174 before buyers stepped in and lifted the price above the 0.9200 figure.

With the Relative Strength Index (RSI) turning bearish and the Rate of Change (RoC) showing that sellers are gathering momentum, the USD/CHF path of least resistance is downwards.

That said, the USD/CHF pair's first support would be the 0.9200 figure. Once broken, the pair would test the March 10 low at 0.9174, followed by the February 14 swing low at 0.9140. A breach of the latter will expose the 0.9100 figure, followed by the YTD low at 0.9059.

In an alternate scenario, if the USD/CHF reclaims 0.9300, that would keep the bulls hopeful for testing the 0.9400 figure. However, buyers must conquer the 50 and 20-day EMAs at 0.9311 and 0.9319.

USD/CHF Daily Chart

USD/CHF Technical Levels

 

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