- The US Dollar remains bid except for the Swiss Franc as USD/CHF rises.
- USD/CHF: A daily close above 0.9425 paves the way for a test of 0.9500.
The US dollar (USD) is showing a modest recovery against the Swiss franc (CHF) after the release of minutes from the November Federal Reserve (Fed) meeting that showed policymakers’ desire to moderate interest rate hikes. Therefore, USD/CHF he tanked on Wednesday, but it was a different story on Thursday. At the time of writing, USD/CHF was trading at 0.9434 after recovering from its daily low of 0.9387.
USD/CHF Price Analysis: Technical Outlook
The USD/CHF daily chart depicts Thursday’s price action forming a hammer, candlestick that appears as a reversal pattern. However, as with most technical analysis tools, this is only one piece of the puzzle as it will need further confirmation from Friday. The Relative Strength Index (RSI) shows that the sellers are in command, but the slope is up, signaling that they could be losing momentum. If USD/CHF reaches a daily close above Wednesday’s 0.9425, it could open the door to a retest of 0.9500. Otherwise, sellers outnumbering buyers could push the major towards 0.9400 before testing the November low at 0.9356.
In the near future USD/CHF 4-hour diagram it shows the major as biased to the downside once it cleared the uptrend line on November 22, exacerbating the dip below 0.9500. On its way to a new weekly low below 0.9400 USD/CHF, it crossed the 50-exponential moving average (EMA) next to the daily pivot point at 0.9460. However, the USD/CHF S1 daily pivot at 0.9381 probed a break of rigid support and the major climbed back above 0.9400 towards the current spot price.
Thus, USD/CHF’s first resistance would be the daily pivot at 0.9460, followed by the 50-EMA at 0.9484, ahead of the psychological level of 0.9500. In an alternative scenario, USD/CHF’s first support would be at 0.9400, followed by the S1 pivot level at 0.9381, before the November low at 0.9356.