The USD/CHF pair is eyeing a recovery after building a base around 0.8960 in the Asian session. The Swiss Franc asset has been defending the aforementioned support for the past two trading sessions. An attempt of recovery by the US Dollar Index (DXY) after correcting to near 101.65 has infused some strength in the Swiss Franc asset.

From a technical perspective, the USD/CHF daily chart portrays the major as downward biased, losing almost 3% annually. However, last Friday, the USD/CHF pair snapped three days of straight losses, forming a bullish piercing pattern that failed to extend above the psychological 0.9000 figure. Even though the USD/CHF is in a pullback, the Rate of Change (RoC) suggests that buyers are outpacing sellers, which could put into play a challenge of the 0.9000 figure.

USD/CHF has sensed barricades at 23.6% Fibonacci retracement (placed from March 08 high at 0.9439 to April 13 low at 0.8860) around 0.9000 on a two-hour scale. The recovery move by the Swiss Franc asset will get strengthened if it manages to climb above the 23.6% Fibo retracement.

The 20-and 50-period Exponential Moving Averages (EMAs) are on the verge of delivering a bullish crossover around 0.8966.

Meanwhile, the Relative Strength Index (RSI) (14) is making efforts for shifting its oscillation in the bullish range of 60.00-80.00.

Should the asset decisively breaks above the 23.6% Fibo retracement around 0.9000, US Dollar bulls will drive the asset towards April 07 low at 0.9034 followed by 38.6% Fibo retracement plotted at 0.9082.

Alternatively, a downside move below April 17 low at 0.8922 will drag the asset toward April 13 low at 0.8860. A slippage below the latter will expose the asset to the round-level support at 0.8800.

Short term buys below the TL before confirm breakout

Apr 19 2023