USD/CHF Price Analysis: Tests the breakout of the critical support around 0.9350

• USD/CHF is displaying a lackluster performance ahead of FOMC minutes and Swiss CPI.
• The Swiss franc asset has comfortably shifted above the 50-EMA around 0.9287.
• A shift into the bullish range by the RSI (14) indicates the upside momentum has been triggered.

The USD/CHF pair is displaying rangebound moves around 0.9350 in the Asian session. The Swiss franc asset has turned lackluster as investors are likely to make an informed decision after the release of the Federal Reserve (Fed)’s December meeting minutes and Wednesday’s Swiss Consumer Price Index (CPI).

Meanwhile, the risk profile is negative as investors seem uncomfortable in pouring funds into risk-perceived assets like S&P500. The US Dollar Index (DXY) is hovering around its two-week high at 104.40.

On a four-hour scale, the Swiss Franc pair has delivered a breakout of the potential resistance plotted from December 19 high at 0.9347. The asset is testing the breakout region after a mild correction, which will strengthen the upside bias.

The major has shifted comfortably above the 50-period Exponential Moving Average (EMA) at 0.9287, which indicates that the short-term trend has turned bullish. Also, the pair has attempted to violate the 200-EMA at 0.9388.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00, which indicates more upside ahead.

Going forward, a decisive break above the round-level resistance of 0.9400 will drive the asset towards December 6 high at 0.9456 followed by the psychological resistance at 0.9500.

On the flip side, a break below Tuesday’s low at 0.9230 will unleash the Swiss franc bulls and expose the asset for a fresh nine-month low around March 7 low at 0.9162. A slippage below the latter will drag the asset towards January 14 low at 0.9094.

USD/CHF four-hour chart