The USD/CHF pair declined by 0.16%, falling below 0.9100, due to a general weakness in the US dollar. The decline was a result of lower US Treasury yields, causing the major to trade at 0.9064. Despite this, technical analysis suggests a neutral to upward bias in the pair, with recent bearish signals from the RSI indicating a loss of upward momentum. Key support levels are identified at 0.9006 (50-day MA and support trendline), while resistance levels are at 0.9100 and 0.9174.
The daily chart shows that while the USD/CHF pair may have lost some strength after reaching a YTD high of 0.9224, it remains neutral to upward biased. The RSI suggests a shift towards bearish sentiment, but strong support at the confluence of the 50-day moving average and a support trendline at 0.9006-0.9030 could prevent further declines. A bullish continuation is possible if the pair breaks above 0.9100, with the potential to reach resistance levels at 0.9174 and 0.9200. Conversely, if bears manage to push prices below 0.9000, a drop towards the 200-DMA at 0.8887 and the 100-DMA at 0.8829 could follow.
Overall, the USD/CHF pair is currently facing downward pressure due to weakness in the US dollar, causing it to trade below 0.9100. However, the technical analysis suggests a potential for a bullish continuation if key resistance levels are breached. On the other hand, a break below 0.9000 could intensify the bearish momentum and lead to further declines in the pair. Traders should closely monitor the key support and resistance levels mentioned to make informed trading decisions.
