USD/CHF Technical Analysis: Path of Least Resistance Points Upwards, but Overbought Conditions Signal Caution.

EnclaveFX Ltd
Sep 21, 2023

The USD/CHF currency pair has been displaying some interesting technical dynamics on its four-hour chart, hinting at potential price movements in the near term. As of the latest analysis, the pair is maintaining its position above both the 50-hour and 100-hour Exponential Moving Averages (EMAs), indicating that the path of least resistance appears to favor the upside.

One of the key indicators to watch is the Relative Strength Index (RSI), which is holding in bullish territory above the 50 level. This suggests that there is underlying strength in the USD/CHF pair. However, it's important to note that the RSI is currently in the overbought condition. This means that while the bias may be towards further USD/CHF appreciation, there is a possibility of consolidation or a retracement before any sustained upward movement.

Turning our attention to resistance levels, the immediate hurdle for USD/CHF is expected to materialize near the upper boundary of the Bollinger Band at 0.9032. Beyond that, additional upside targets include 0.9060, which corresponds to a high reached on May 19, followed by 0.9073 (a high from May 25), and finally 0.9105 (a peak seen on June 8).

Conversely, on the downside, the 100-hour EMA at 0.8906 plays a pivotal role as a critical support level for the pair. Further to the south, the USD/CHF pair encounters the 50-hour EMA at 0.8870, followed by a psychological round figure at 0.8800. In the event of an intraday pullback below this level, attention would shift to the next downside support at 0.8775. This level represents a confluence point between the lower boundary of the Bollinger Band and a low recorded on August 23.


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