- USD/CHF has turned sideways after a firmer recovery move from around 0.9200.
- A follow-up buying after a Double Bottom formation indicates the strength of the US Dollar.
- The RSI (14) has comfortably shifted into the bullish range of 60.00-80.00, which indicates more upside ahead.
The USD/CHF pair has picked strength after a minor correction to near 0.9300 in the Asian session. The Swiss franc asset faced barricades near 0.9325 in an attempt to extend its upside journey. On Wednesday, the major displayed a responsive buying action after dropping to near 0.9204.
The major could remain inside the woods ahead of the release of the United States inflation data. Meanwhile, the risk appetite of investors is significantly improved as S&P500 has displayed back-to-back bullish trading sessions despite anxiety ahead of the release of the US Consumer Price Index (CPI) data. The US Dollar Index (DXY) is hovering around 103.00.
On an hourly scale, USD/CHF witnessed a sharp bullish reversal after forming a Double Bottom chart pattern near the round-level support of 0.9200. After sensing weak selling interest near the aforementioned support, bulls made a comeback and pushed the asset higher vigorously.
The 20-and 50-period Exponential Moving Averages (EMAs) at 0.9283 and 0.9260 are upward-sloping now, which adds to the upside filters.
Meanwhile, the Relative Strength Index (RSI) (14) has comfortably shifted into the bullish range of 60.00-80.00 from the 40.00-60.00 range, which indicates that the bullish momentum has been triggered.
Going forward, a break above Wednesday’s high at 0.9332 will drive the asset towards December 12 high at 0.9367 followed by the round-level resistance at 0.9400.
Alternatively, a slippage below Monday’s low at 0.9167 will result in a fresh downside journey toward the March low at 0.9150. A downside move below the March low will expose the asset to January 17 low at 0.9117.
USD/CHF hourly chart
-638090755921242397.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
