• USD/CHF pair trades in the 0.8934/0.9004 area, showing a neutral to downward bias amidst a lack of strong catalysts.
• The RSI points towards bullish territory, while the RoC indicates buyers are still in control, sending mixed signals to traders.
• Breaking above the 0.9000 mark could challenge current resistance levels, while a fall below 0.8945 may trigger a deeper decline.

USD/CHF advanced steadily on Wednesday after the release of US economic data painted a gloomy economic outlook in the United States (US) as traders prepare for the Federal Reserve’s (Fed) release of the latest monetary policy minutes. The USD/CHF trades at 0.8977 after hitting a daily low of 0.8957 and gains 0.08%.

USD/CHF Price Analysis: Technical outlook

The USD/CHF remains neutral to downward biased, but the lack of catalyst triggered a consolidation during the week in the 0.8934/0.9004 area. Nevertheless, the long-term daily Exponential Moving Averages (EMAs) sitting above the current exchange rate warrants further downside.

Even though the Relative Strength Index (RSI) is in bearish territory, it continues to edge higher, is about to cross above the 50-midline, and will turn bullish, while the three-day Rate of Change (RoC) suggests that buyers remained in charge.

Hence, mixed signals could refrain traders from opening fresh long/short bets on the pair. However, If USD/CHF reclaims 0.9000, the pair could challenge the confluence of the 50-day EMA and the current week’s high at around 0.9003/04. A breach of the latter will expose the USD/CHF June 30 swing high at 0.9016, followed by a one-month-old downslope resistance trendline at 0.9015, followed by the 100-day EMA at 0.9074, and the 0.9100 figure.

On the flip side, if USD/CHF drops below the July 4 daily low of 0.8945, which, once cleared, will expose the June 30 daily low of 0.8935, ahead of diving toward the June 16 low of 0.8901.