USD/CHF Price Analysis: Bounces from the 100-DMA, but battles around 0.9650
- The USD/CHF got a bid ahead of the FOMC meeting on mixed sentiment.
- From a medium-term perspective, the USD/CHF is upward biased; it could retest 0.9900.
- USD/CHF Price Analysis: A bearish flag emerged, which, once broken, would send the pair sliding towards 0.9580.
The USD/CHF stages a rebound from last week’s low and the 100-day moving average (DMA) at 0.9600 and edges higher on a mixed sentiment with US equities fluctuating as traders brace for the Federal Reserve monetary policy decision on Wednesday. At the time of writing, the USD/CHF is trading at 0.9652, slightly gaining 0.37%.
USD/CHF Price Analysis: Technical outlook
From a daily chart perspective, the USD/CHF is still upward biased, as buyers stepped in around 0.9600 and lifted the exchange rate towards Monday’s daily high at 0.9660. Nevertheless, since June, the USD/CHF has been range-bound within the 0.9500-0.9900 area, so a break above the 50-DMA at 0.9698 would put in play a move towards the July 18 high at 0.9789 before challenging the 0.9900 mark.
USD/CHF 1-hour chart
The USD/CHF is still neutral-to-downward biased, with the hourly SMAs residing above the exchange rate. Oscillators, although showing positive readings, the RSI is about to cross under its 7-period SMA, which would open the door for further losses. USD/CHF traders should be aware that a bearish-flag formed, which once broken to the downside, would pave the way for a break below 0.9600.
If that scenario is about to play out, the USD/CHF first support would be the daily pivot at 0.9640. A breach of the latter would immediately expose the bottom trendline of the bearish flag. Once cleared, the next support would be 0.9600. A decisive break would expose the bearish-flag target around the 0.9575-80 area.
USD/CHF Key Technical Levels