USD/CHF Price Analysis: Bounces from multi-month lows, approaching the 100-DMA

• The USD/CHF stages recovery after hitting a four-month low at 0.9470.
• Sentiment remains negative, bolstering appetite for the greenback.
• In the long-term, the USD/CHF is neutral biased, but short-term is tilted upwards, opening the door for a test of the 0.9600 mark.

The USD/CHF rebounded from under the June 29 swing low at 0.9495 and climbed to the daily high at  0.9559s, amidst a sour market mood, on US-China tussles, while also Fed speakers continued to push back against the market’s reaction to the FOMC 75 bps rate hike. At the time of writing, the USD/CHF is trading at 0.9551, up 0.67%.

USD/CHF Price Analysis: Technical outlook

The USD/CHF is neutral biased on sellers’ failure to hold the exchange rate below 0.9495, which would have paved the way towards the 200-day EMA at 0.9412. Instead, the USD/CHF edged higher, forming a bullish-engulfing chart pattern, a reversal pattern indicating buyers outweigh sellers, keeping risks skewed to the upside. Besides, the Relative Strength Index (RSI) is about to cross over its 7-day RSI’s SMA, which would open the door for higher prices.

Therefore, the USD/CHF first ceiling level would be the 100-day EMA at 0.9614. Break above will expose the major for further upside. Otherwise, a breach under 0.9500 could send the pair towards 0.9412, the 200-day EMA.

USD/CHF 1-hour chart

The USD/CHF is neutral-upward biased but faced solid resistance at a fifteen-day-old downslope trendline, which capped the rally at 0.9559. However, with the spot price above the 20, 50, and 100-hour EMAs, alongside the Relative Strength Index (RSI) aiming higher. That could open the door for a USD/CHF re-test of 95.60, which would lift the major towards the 200-hour EMA at 0.9592.

USD/CHF Key Technical Levels