USD/CHF Price Analysis: Doji emerges after two days of losses, meanders around 0.9275

• USD/CHF slightly falls as the Asian session begins.
• Risk aversion was spurred by the increase of Covid cases in China and Western countries requiring tests from flights originating in China.
• USD/CHF Price Analysis: A doji suggests buyers are stepping in, but failure to crack 0.9300 could exacerbate a fall.

The USD/CHF snaps two days of losses and forms a doji in the daily chart after sentiment shifted sour on the increase of Covid-19 cases in China. Therefore, some Western countries like Italy and the United States (US) would begin soliciting Covid-19 tests from travelers with flights originating in China. At the time of writing, the USD/CHF is trading at 0.9275.

USD/CHF Price Analysis: Technical outlook

From a daily chart perspective, the USD/CHF continued its downtrend after dropping below the 200-day Exponential Moving Average (EMA), which exacerbated a fall toward 2022 open at 0.9116. Nonetheless, since mid-December, the USD/CHF pair has strengthened, but as long as it remains below the 20-day EMA at 0.9339, keeping sellers under control.

However, the presence of a doji could pave the way for a rally to the 0.9300 mark, but unless the USD/CHF clears the 0.9344 mark, risks will remain skewed to the downside.

Therefore, the USD/CHF first support would be the December 28 daily low of 0.9244, followed by the December 22 low of 0.9226, ahead of the 0.9200 mark. As an alternate scenario, if the USD/CHF clears 0.9300, the pair would be poised to challenge 0.9344.

USD/CHF Key Technical Levels