• USD/CHF will likely remain pressured following Powell’s “neutral” speech.
• USD/CHF Price Analysis: Downward biased, but it could print a leg-up once it clears the 50-day EMA.

USD/CHF slid from weekly highs and reached around 0.9290 after the US Federal Reserve (Fed) Chair Powell’s speech failed to push back against a perceived dovish rate hike, even though he acknowledged a strong US jobs report. At the time of writing, the USD/CHF exchanges hands at 0.9219, below its opening price.

USD/CHF Price Analysis: Technical outlook

The USD/CHF is resting at around the 20-day Exponential Moving Average (EMA) at 0.9217 as Wall Street’s session wanes. Failure to crack the latter would keep USD/CHF bulls hopeful for higher prices, but they will need to challenge the 50-day EMA at 0.9303 if they want to shift the bias to neutral upwards. In that outcome, the USD/CHF could aim higher and face the next supply zone at a downslope trendline drawn from December’s highs, which passes in the 0.9320-35 area. Once cleared, the 100-day EMA would be up for grabs at 0.9420.

For a resumption of the downtrend, the USD/CHF needs a break below the 20-day EMA and February 7 low of 0.9191. A breach of the latter will poise the USD/CHF pair towards the February 3 daily low of 0.9112, ahead of the 0.9100 figure.

Momentum indicators are beginning to show bearish signals, with the Relative Strength Index (RSI) crossing below the 50-mid line. The Rate of Change (RoC) portrays buying pressure is fading, strengthening the bearish outlook in the near term.

USD/CHF Key Technical Levels