USD/CHF Price Analysis: Extends its upside around the 0.9000 mark amid overbought RSI

• USD/CHF extends its upside for the third straight day, hovering around the 0.9000 area.
• The pair holds above the 50- and 100-hour EMAs; Overbought RSI condition indicates that further consolidation cannot be ruled out.
• The immediate resistance level emerges at 0.9032; 0.8906 acts as a critical support level for the pair.

The USD/CHF pair gains momentum near the 0.9000 psychological mark during the early European session on Thursday. Market players await the Swiss National Bank (SNB) interest rate decision later in the day.

SNB is expected to raise additional interest rates by 25 basis points (bps) from 1.75% to 2% on Thursday. However, if SNB offers hints about its last hike, the monetary policy divergences between the US and Switzerland might continue to drive the pair higher.

On the US Dollar front, the Federal Reserve (Fed) held interest rates unchanged at the 5.25-5.50% range on Wednesday, as widely predicted in the market. Fed Chairman Jerome Powell reaffirmed the Fed's commitment to achieving 2% inflation in a press conference while mentioning that the Fed is ready to raise rates if necessary. These hawkish remarks boost the Greenback against the Swiss Franc and act as a tailwind for the USD/CHF pair.

According to the four-hour chart, USD/CHF holds above the 50- and 100-hour Exponential Moving Averages (EMAs), which means the path of least resistance for the pair is to the upside. The Relative Strength Index (RSI) holds in bullish territory above 50. However, the overbought condition indicates that further consolidation cannot be ruled out before positioning for any near-term USD/CHF appreciation.

That said, the immediate resistance level for USD/CHF will emerge near the upper boundary of the Bollinger Band at 0.9032. The additional upside filter is located at 0.9060 (a high of May 19) en route to 0.9073 (a high of May 25) and finally at 0.9105 (a high of June 8).

On the downside, the 100-hour EMA at 0.8906 acts as a critical support level for the pair. Further south, the next stop of the USD/CHF pair is located at 0.8870 (the 50-hour EMA), followed by a psychological round figure at 0.8800. Any intraday pullback below the latter would expose the next downside stop at 0.8775, portraying the confluence of the lower limit of the Bollinger Band and a low of August 23.

USD/CHF four-hour chart