USD/CHF Price Analysis: Finds support near the 200-EMA and trendline break around 0.9240
- USD/CHF has witnessed bids around 0.9240, supported by a recovery in the US Dollar Index.
- The Swiss Franc asset is testing the breakout of the downward-sloping trendline plotted from 0.9600.
- A bullish momentum will be triggered if the RSI (14) manages to reclaim the 60.00-80.00 range.
The USD/CHF pair has sensed a buying interest after a vertical correction below 0.9240 in the early Tokyo session. The Swiss Franc asset has picked demand as the market mood is getting nervous after a warning signal from the United States to China in case it decides to provide lethal support to Russia in its invasion of Ukraine.
The US Dollar Index (DXY) has rebounded to near 103.63 and is looking to extend its recovery as the risk appetite of the market participants is fading away. S&P500 futures are demonstrating more losses, portraying a risk aversion theme. This week, the release of the US Gross Domestic Product (GDP) data will remain in the spotlight.
USD/CHF is testing the breakout of the downward-sloping trendline placed from November 21 high around 0.9600 on a four-hour scale. Usually, a test of a trendline breakout with less velocity indicates the strength of bulls and prepares a platform for a confident upside move ahead.
Also, the 200-period Exponential Moving Average (EMA) at 0.9243 is providing a cushion to the US Dollar.
Meanwhile, the Relative Strength Index (RSI) (14) has failed to sustain in the bullish range of 60.00-80.00. A bullish momentum will be triggered if the momentum oscillator manages to reclaim the 60.00-80.00 range.
For a fresh upside, the Swiss Franc asset needs to deliver a confident break above February 6 high of around 0.9290, which will drive the asset towards January 12 high at 0.9363 followed by January 6 high at 0.9410.
In an alternate scenario, a breakdown below February 9 low at 0.9161 will drag the asset toward the round-level support at 0.9100. A slippage below the latter will drag the asset toward February low at 0.9051.