USD/CHF Price Analysis: Collapses below 20/50-DMAs once bears moved in at the 100-DMA

  • USD/CHF extended its drop past the 20/50-day EMAs after facing resistance at the 200-day EMA.
  • USD/CHF Price Forecast: Shifted bearish, though needs to crack 0.9130s to test YTD lows.

USD/CHF falls below the confluence of the 20 and 50-day Exponential Moving Averages (EMAs), extending its daily losses to more than 1% Friday. A mixed US jobs report weighed on the US Dollar (USD). Sentiment deteriorates on a US bank collapse, which could have spillover in the country. At the time of writing, the USD/CHF is trading at 0.9216.

USD/CHF Price Action

After dropping below the intersection of the 20 and 50-day EMAs, the USD/CHF shifted downwards. During the day, the pair reached a multi-week low of around 0.9174 before buyers stepped in and lifted the price above the 0.9200 figure.

With the Relative Strength Index (RSI) turning bearish and the Rate of Change (RoC) showing that sellers are gathering momentum, the USD/CHF path of least resistance is downwards.

That said, the USD/CHF pair’s first support would be the 0.9200 figure. Once broken, the pair would test the March 10 low at 0.9174, followed by the February 14 swing low at 0.9140. A breach of the latter will expose the 0.9100 figure, followed by the YTD low at 0.9059.

In an alternate scenario, if the USD/CHF reclaims 0.9300, that would keep the bulls hopeful for testing the 0.9400 figure. However, buyers must conquer the 50 and 20-day EMAs at 0.9311 and 0.9319.

USD/CHF Daily Chart

USD/CHF Technical Levels

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.

Related Articles

Back to top button