USD/CHF Preparing for a Pullback – Buy Now?
In the Asian session, the [[USD/CHF]] pair is trading rangebound around 0.9350. The Swiss franc has lost its luster
Skerdian Meta•Thursday, January 5, 2023•1 min read
In the Asian session, the
USD/CHF pair is trading rangebound around 0.9350. The Swiss franc has lost its luster as investors are expected to make an informed judgment following the release of the Federal Reserve’s December meeting minutes and the Swiss Consumer Price Index (CPI) on Wednesday.
Meanwhile, the risk profile is negative, as investors appear uneasy about investing in risky assets such as the S&P 500. The US Dollar Index (DXY) is trading near a two-week high of 104.40.
On a four-hour scale, the Swiss Franc pair has broken through the potential resistance marked from the high of December 19 at 0.9347. Following a minor retracement, the asset is challenging the breakout zone, which will reinforce the bullish bias.
The major has moved safely just above the 50-period simple moving average (SMA) at 0.9287, indicating a bullish short-term trend. In addition, the pair has sought to breach the 200-EMA at 0.9388.
Furthermore, the
Relative Strength Index (RSI) (14) has moved into the bullish zone of 60.00–80.00, indicating that more gains are on the way.
If the asset breaks through the round level of resistance at 0.9400, it will move towards the high from December 6 of 0.9456 and then the psychological barrier at 0.9500.
A fall below Tuesday’s low of 0.9230, on the other hand, will rouse the Swiss franc bulls and expose the asset to a new nine-month bottom around the March 7 low of 0.9162. A break below the latter will push the asset towards the January 14 low of 0.9094.
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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