USD/CHF Price Analysis: Rebounds from 0.9110 support confluence
04.04.2023, 05:50

USD/CHF Price Analysis: Rebounds from 0.9110 support confluence

  • USD/CHF pares the previous day’s losses at three-week low.
  • Convergence of one-week-old and two-month-long ascending trend lines puts a floor under Swiss Franc pair.
  • Sluggish oscillators, strong resistances challenge pair buyers unless the quote stays below 200-SMA.

USD/CHF picks up bids to refresh its intraday high near 0.9140 as it consolidates the week-start losses at a multi-day low. With this, the Swiss Franc (CHF) bounces off short-term key support lines heading into Tuesday’s European session.

A one-week-long ascending trend line joins an upward-sloping support line from early February to highlight the 0.9110 level as the key downside support, from which the USD/CHF pair recovered recently.

It’s worth noting, however, that the MACD and RSI (14) struggle to convince USD/CHF bulls as they approach a three-week-long descending resistance line, close to 0.9180.

Also acting as a short-term important upside hurdle is the 100-SMA level surrounding 0.9195, quickly followed by the 0.9200 round figures.

In a case where the USD/CHF prices remain firmer past 0.9200, the 200-SMA hurdle of 0.9266 can act as the last defense of bears.

Alternatively, the aforementioned trend line confluence near 0.9110 appears a tough nut to crack for the USD/CHF bears on their return.

Following that, lows marked in March and February, respectively around 0.9070 and 0.9060 can challenge the pair sellers.

Should the quote remains bearish past 0.9060, the odds of witnessing a slump toward the 0.9000 round figure can’t be ruled out.

USD/CHF: Four-hour chart

Trend: Limited recovery expected

 

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