- USD/CHF is almost flat as Thursday’s Asian session begins.
- USD/CHF Price Analysis: To the downside, although it appears to have bottomed around 0.9000.
USD/CHF is holding at 0.9300 at the start of the Asia-Pacific session, but after printing a new weekly high of 0.9318, it is trading below its opening price, gaining 0.39% on Wednesday. At the time of writing, USD/CHF is exchanging hands at 0.9302.
USD/CHF pair is neutral to bearish, with the long-term exponential moving averages (EMA), 100- and 200-day EMAs above the exchange rate each at 0.9383 and 0.9454, respectively. Additionally, the USD/CHF spot price remains below the daily high of 0.9409 on January 6, which could see the pair strengthen to test the 200-day EMA after a break.
While the USD/CHF divergence is tilted to the downside, the pair appears to have bottomed around 0.9059. Also, the Relative Strength Index (RSI) and Rate of Change (RoC) are bullish, indicating buyers are piling up.
USD/CHF’s path of least resistance is therefore to the upside in the near term. The first resistance would be last week’s high at 0.9331. The decisive break and subsequent tested resistance would be the 100-day EMA at 0.9383, ahead of 0.9400. Once these two supply zones are conquered, buyers will target the 200-day EMA at 0.9454 before posing a threat to 0.9500.
Conversely, if USD/CHF breaks below the 50-day EMA at 0.9281, it will exacerbate the decline towards the February 14 daily low of 0.9135.