USD/CHF gains traction to around 0.8225 in Wednesday’s early European session.
The negative outlook of the index remains in play below the 100-day EMA with a bearish RSI indicator.
The first support level to watch is 0.8121; the immediate resistance level is seen at 0.8360.
The USD/CHF pair drifts higher to near 0.8225 during the early European session on Wednesday, bolstered by the renewed US Dollar (USD) demand. Hope for the US-China trade deal provides a boost for investors. Additionally, US President Donald Trump backed away from threats of firing Federal Reserve (Fed) Chair Jerome Powell, which provides some support to the Greenback.
According to the daily chart, the bearish sentiment of USD/CHF prevails as the pair is below the key 100-day Exponential Moving Average (EMA). Furthermore, the downward momentum is supported by the 14-day Relative Strength Index (RSI), which stands below the midline near 36.0, supporting the sellers in the near term.
The initial support level for the pair emerges at 0.8121, the low of April 16. Further south, the additional downside filter to watch is 0.8040, the low of April 21. The key contention level is seen at the 0.8000 psychological level.
On the flip side, the first upside barrier for USD/CHF is located at 0.8360, the low of April 9. Any follow-through buying above this level could pave the way to 0.8609 the high of April 8. A decisive break above the mentioned level could see a rally to 0.8750, the 100-day EMA.
USD/CHF daily chart
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