USD/CHF prints a four-day downtrend as sellers poke the lowest levels in eight months around 0.9325, marked the last Friday. That said, the Swiss Franc (CHF) pair remains pressured around 0.9335 during early the early Asian session. US Dollar Index (DXY) prints a three-day downtrend near 104.60, down 0.22% intraday while tracing downbeat US Treasury yields and justifying the softer US data printed of late.

From a daily chart perspective, the USD/CHF daily chart suggests the pair is downward biased. Since mid-November, the USD/CHF has formed a falling wedge, a bullish continuation chart pattern, which appeared, following the massive swing from around 2022 highs of 1.0147, towards the last week’s 0.9326 low. Therefore, the USD/CHF might consolidate between the wedge boundaries before breaking upwards/downwards.

Oscillators give mixed signals, with the Relative Strength Index (RSI) aiming downwards, while the Rate of Change (RoC) portrays selling pressure fading. Unless the USD/CHF breaks below 0.9326 and poses a challenge to break the wedge on the downside, that could lay the ground for a test of the 0.9300 figure.

As an alternate scenario, the USD/CHF first resistance would be the 0.9400 figure, followed by the September 13 daily low-turned-resistance at 0.9479, followed by the wedge’s top-trendline at 0.9505, and the 20-day Exponential Moving Average (EMA) At 0.9510. On the contrary, pullback moves remain elusive beyond the aforementioned short-term support line, near 0.9370 as we write.

A daily closing below the monthly bottom surrounding 0.9325 becomes necessary for the USD/CHF bears to keep the reins and approach March 2022 low near 0.9195.

Buying USDCHF For Short Term Positions Only (Long Term Sell)

Dec 11 2022