USD/CHF pares the first daily gain in three around 0.9135 as the market’s anxiety ahead of the key US inflation data escalates during the initial hour of Friday’s European session. In doing so, the Swiss Franc (CHF) pair reverses from the previous support line from mid-March.

Not only the failure to cross the support-turned-resistance but the bearish MACD signals also weigh on the USD/CHF price.

As a result, the Swiss currency pair sellers are well-set to challenge an upward-sloping support line from early February, around 0.9110 by the press time.

It should be noted that a clear break of the said key support line will need validation from the 0.9100 round figure and the previous monthly low of around 0.9060 to convince the USD/CHF bears to prod the 0.9000 psychological magnet.

Meanwhile, an upside break of the aforementioned previous support line, close to 0.9150, isn’t an open invitation to the USD/CHF bulls.

The reason could be linked to the presence of a convergence of the 50-bar Exponential Moving Average (EMA) and a downward-sloping resistance line from March 09, close to 0.9190.

Even if the USD/CHF bulls manage to cross the 0.9190 resistance confluence, the 0.9200 round figure and 61.8% Fibonacci retracement level of its February-March upside, near 0.9205, may act as an extra check for the buyers.

Even though the USD/CHF continued to press towards the 0.9100 figure, the sellers could not register a decisive break below the latter. Technical indicators like the Relative Strength Index (RSI) and the Rate of Change (RoC) are flat, suggesting that sellers are jumping from the boat. However, if the USD/CHF dives below 0.9100, that would open the door to challenge the YTD low at 0.9059. On the flip side, buyers reclaiming 0.9150 could pave the way for a recovery to 0.9200 and beyond.

USDCHF to sustain the prices above 0.9100

Mar 31 2023