The USD/CHF pair has rebounded after a corrective move to near 0.8930 in the early Asian session on Friday. The Swiss Franc asset has sensed buying interest amid an absence of a clear path for an increase in the US debt-ceiling limit. House Speaker McCarthy said the debt limit can't pass without dealing with the budget, as reported by Bloomberg.

USD/CHF is offered and on the way to test the monthly support. However, the price is stalling and a correction could be on the cards for the coming days. A 50% mean reversion comes in at 0.9100.

USD/CHF has recovered sharply after a Double Bottom chart formation on a four-hour scale near 0.8863. The Swiss Franc asset is aiming to conquer the downward-sloping trendline plotted from March 08 high at 0.9439. However, we are yet to see a bullish schematic playout on the daily chart with the price submerged below the trendline resistance without closing on the back side of it yet. The horizontal structure is located at 0.9003.

The major has climbed above the 20-and 50-period Exponential Moving Averages (EMAs) at 0.8921 and 0.8935 respectively, indicating solid short-term upside bias.

Meanwhile, the Relative Strength Index (RSI) (14) has stepped above 60.00. Sustainability above the same will activate the bullish momentum.

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.

Trendline speaks of bearish sentiments prevailing on USDCAD

Apr 29 2023