The USD/CHF pair has been on an uptrend lately, with the 20-day EMA about to cross over the 50-DMA. This could shift the bias of the pair from neutral to upwards. The USD/CHF is currently trading at 0.9342, after breaking the previous weekly high and reaching a new one at 0.9348 on Thursday.
The long-term Exponential Moving Averages (EMAs), the 100 and 200-day EMAs, are currently resting above the exchange rate at 0.9384 and 0.9455, respectively. This indicates that the USD/CHF bias is tilted to the downside. However, the pair appears to have bottomed around 0.9059. This is further confirmed by the Relative Strength Index (RSI) and the Rate of Change (RoC), which are both bullish and suggest that buyers are moving in.
Therefore, the path of least resistance for the USD/CHF is upwards in the near term. The first resistance would be the January 12 high at 0.9360. If this is broken, the next resistance would be the 100-day EMA at 0.9384, followed by the 0.9400 figure. Once these two resistance levels are surpassed, buyers will be targeting the 200-day EMA at 0.9454 and the 0.9500 figure.
On the other hand, if the USD/CHF drops below the 50-day EMA at 0.9283, it could fall further to the February 14 daily low at 0.9135.
The USD/CHF is currently in a period of consolidation. As the 20-day EMA is about to cross over the 50-DMA, the bias of the pair could shift from neutral to upwards. This could be a good opportunity for traders to enter the market and capitalize on the potential uptrend.
However, traders should also be aware of the risks associated with trading the USD/CHF. The pair is currently trading beneath the January 6 daily high of 0.9409, which keeps the bearish bias intact. If the rate is not surpassed, the USD/CHF could fall further and traders should be prepared to exit the market if the pair drops below the 50-day EMA at 0.9283.
In conclusion, the USD/CHF is in a period of consolidation and could shift its bias from neutral to upwards if the 20-day EMA crosses over the 50-DMA. Traders should take advantage of the potential uptrend, but also be aware of the risks associated with trading the USD/CHF. If the pair drops below the 50-day EMA at 0.9283, traders should be prepared to exit the market.
