USDCHF Price Analysis: Gauges support near long-term trendline around 0.9400

• A six-day losing spell has halted after kissing the upward-sloping trendline around 0.9400.
• The 50-and 200-EMAs have turned south which indicates that the short-and long-term trend has turned bearish.
• A bearish range shift by the RSI (14) adds to the downside filters.

The USDCHF pair has extended its recovery after overstepping the intraday hurdle of 0.9455 in the Asian session. As the risk-on impulse is losing its steam after remaining at the driver’s seat, the risk aversion theme is gaining traction. Six-day losing streak in USDCHF has been halted for now.

The US dollar index (DXY) has rebounded to near 106.90 after registering a three-month of 106.28. S&P500 futures are displaying losses after an extended weekend. Meanwhile, the 10-year US Treasury yields have resurfaced to 3.89%.

On a daily scale, the asset has displayed a perpendicular fall after failing to sustain above the critical resistance of 1.0100. The major has dropped sharply to near the upward-sloping trendline placed from the 6 January 2021 low at 0.8758.

A sheer decline in the pair has turned the 50-and 200-period Exponential Moving Averages (EMAs) at 0.9830 and 0.9645 respectively towards the downside. This indicates that the short- and long-term trend is bearish now.

Adding to that, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00 for the first time in 15 months, which indicates more weakness ahead.

Should the asset drop below Friday’s low around 0.9400, the Swiss franc bulls will drag the pair towards January 31 high at 0.9343, followed by March 31 low around 0.9200.

On the flip side, a break above the psychological resistance of 0.9500 will drive the asset toward the 200-EMA at 0.9645. A breach above the 200-EMA will send the asset toward the round-level resistance at 0.9700.

USDCHF daily chart