The USD/CHF pair is oscillating in a narrow range around 0.9230 in the early Asian session. The Swiss Franc asset has turned sideways following the footprints of the US Dollar Index (DXY). The USD Index failed to gauge a decisive movement amid less trading activity due to an elongated weekend in the United States amid a holiday on Monday due to Presidents’ Day.

Investors are shifting their focus towards the release of the preliminary S&P PMI (Feb) figures and the Federal Reserve (Fed) minutes. The minutes from the Fed will provide a detailed explanation of hiking interest rates by 25 basis points (bps) in the February monetary policy meeting.

USD/CHF is testing the breakout of the downward-sloping trendline placed from November 21 high around 0.9600 on a four-hour scale. Usually, a test of a trendline breakout with an absence of solid downside pressure indicates the strength of bulls and prepares a platform for a confident upside move ahead.

The Swiss Franc asset is employing efforts to shift its auction above the 200-period Exponential Moving Average (EMA) at 0.9245.

Meanwhile, the Relative Strength Index (RSI) (14) has failed to sustain in the bullish range of 60.00-80.00. A bullish momentum will be triggered if the momentum oscillator manages to reclaim the 60.00-80.00 range.

For a fresh upside, the Swiss Franc asset needs to deliver a confident break above February 6 high around 0.9290, which will drive the asset towards January 12 high at 0.9363 followed by January 6 high at 0.9410.

In an alternate scenario, a breakdown below February 9 low at 0.9161 will drag the asset towards the round-level support at 0.9100. A slippage below the latter will drag the asset towards February low at 0.9059.

USDCHF to be dominated by bearish short term pressure

Feb 21 2023

Stop Loss -0.85%

Holding time 2d8hr

0.92340

Entry price

0.91559

Stop loss price