USD/CHF Price Analysis: Prods 200-HMA amid oversold RSI as US NFP looms
02.06.2023, 01:58

USD/CHF Price Analysis: Prods 200-HMA amid oversold RSI as US NFP looms

  • USD/CHF remains depressed, poking the key support, ahead of the key US employment report for May.
  • 200-HMA, oversold RSI restrict immediate downside of Swiss Franc pair.
  • Multiple hurdles, Fed concerns prod buyers amid sluggish session.

USD/CHF holds lower ground near 0.9050 during early Friday, after positing the biggest daily loss in two weeks, as the key technical catalysts challenge sellers. Apart from that, the market’s positioning for the US Nonfarm Payrolls (NFP), especially amid the latest reduction in the hawkish Fed bets, also challenges the pair sellers.

That said, the 200-Hour Moving Average (HMA) level of around 0.9050 joins the oversold RSI (14) conditions to restrict the immediate downside of the USD/CHF pair.

Even if the Swiss Franc buyers manage to conquer the key HMA, an upward-sloping support line from May 22, close to 0.9045, will act as an extra filter towards the south.

In a case where the USD/CHF bears manage to smash the 0.9045 support, a downward trajectory towards the late May bottom of near 0.9020 and then to the 0.9000 round figure can’t be ruled out, ahead of highlighting the previous monthly low of 0.8820 for sellers.

On the contrary, USD/CHF recovery needs validation from the 100-HMA level of 0.9068, as well as the US NFP, to recall the buyers.

Even so, the previous resistance line stretched from May 18, close to 0.9080, as well as 0.9100 may prod the bulls before giving them control.

In that case, the monthly high of around 0.9150, marked on Wednesday, should gain the market’s attention.

USD/CHF: Hourly chart

Trend: Corrective bounce expected

 

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