USD/CHF stays above 200-day SMA as inverse head-and-shoulders holds
The USD/CHF pair remains steady on Wednesday as market participants await the US central bank's monetary policy decision, with the Federal Reserve expected to hold rates unchanged. At the time of writing, the pair trades at 0.7932, flattish.
USD/CHF Price Forecast: Technical outlook
Price action shows that the ‘inverse head-and-shoulders’ remains intact, with the USD/CHF spot price sitting above the 200-day Simple Moving Average (SMA) at 0.7905, usually sought for investors and algos, as a trend-setter signal in the long term.
The Relative Strength Index (RSI) shows that momentum is bullish, though the index’s slope is horizontal, an indication of indecision amongst traders.
Above, the USD/CHF's first key resistance is the 0.7950 psychological level, followed by the June 11 swing high at 0.8013. Once hurdled, the next stop would be the March 31 high of 0.8042, which is also the ‘inverse head-and-shoulders’ measured target, ahead of 0.8050.
On the flip side, if the pair slides below the 200-day SMA, it opens the door to clear the 0.7900 figure. A breach of the latter will expose the confluence of the 50-day SMA and the June 4 daily low of 0.7868, followed by the 100-day SMA at 0.7841. Below these levels lies the 0.7800 figure.
USD/CHF Price Chart – Daily
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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