• Asset shows indecisiveness on ‘Spinning Top’ candlestick formation.
• The RSI (14) looks to violate 40.00 on the downside for the first time this year.
• Swiff franc bulls have faced barricades at 200 EMA.

The USD/CHF pair has been bounced back sharply after tumbling below the round level support of 0.9200. The major has witnessed a minor responsive buying from the 200-period Exponential Moving Average (EMA) at 0.9217, after a two-day intensified sell-off.

On the daily scale, the trendline placed from January 13 low at 0.9092, adjoining the February 21 low at 0.9150 is providing a cushion to the asset. The formation of the ‘Spinning Top’ candlestick pattern near the trendline placed signals an indecisiveness in the sentiments of the market participants. The asset is established below 50 EMA at 0.9264, which adds to the downside filters.

The Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range but is likely to skid below 40.00 for the first time this year, which will result in intensified selling by investors.

Should the asset drops below the ‘Spinning Top’ candlestick formation at 0.9195, a bearish trigger will drag the asset towards monthly lows and January 24 low at 0.9150 and 0.9109 respectively.

On the contrary, greenback bulls can obtain control if the asset advances above the 50 EMA at 0.9264. This will drive the asset towards March 28 high at 0.9293, followed by March 30 high at 0.9319.

USD/CHF daily chart