- USD/CHF rebounds, trading at 0.8941 and showing consolidation around the 0.8900 level.
- The pair needs to break 0.8949 (61.8% Fibonacci retracement) to reach the 0.9000 mark.
- A break below 0.8900 could reveal a 1-year low at 0.8819.
USD/CHF bounces back from around weekly lows, though it remains below 0.9000, as risk-off momentum boosted the US dollar (USD), which is set to end the week with losses of 1.18% for US dollar index (DXY). USD/CHF is trading at 0.8941 after hitting a daily low of 0.8901.
USD/CHF Price Analysis: Technical Outlook
USD/CHF depicts the pair as bearishly biased, although it is set to consolidate near 0.8900. During the session, USD/CHF fell from around 61.8% Fibonacci Retracement (FR) towards the 78.6% FR level but failed to break 0.8900, which would worsen further losses and YTD low test of 0.8819.
As USD/CHF rebounds towards the 61.8% FR at 0.8949, buyers need to conquer the latter to lift rates to the psychological level of 0.9000. In this outcome, the next USD/CHF resistance would be the 50% FR at 0.8983, followed by the 0.9000 mark.
Conversely, the path of least resistance, according to oscillators such as Relative Strength Index (RSI) and Rate of Change (RoC), if USD/CHF breaks below 0.8900 and below 78.6% FR, it will reveal the YTD low at 0.8819 .