USD/CHF Price Analysis: Battles 21-DMA within a falling channel ahead of NFP
- USD/CHF looks to test the falling channel hurdle once again.
- The spot clings to 21-DMA with bearish RSI.
- All eyes on the US NFP for the next direction.
USD/CHF pares gains to trade just above the 0.9100 level, having hit a daily high of 0.9117 earlier this Friday.
The upbeat market mood on the European markets dampened the haven demand for the Swiss franc, driving the major back on the 0.91 barrier. Meanwhile, the US dollar holds steady across its main rivals, awaiting fresh cues from the critical US non-farm payrolls data.
USD/CHF: Technical outlook
The price continues to range in a one-and-half month-long falling channel, testing the upside hurdle for the third straight day today.
As we write, the major battles the 21-DMA at 0.9097, having failed to deliver a daily closing above the latter.
The bulls need to take out the said barrier at 0.9137 for the pattern breakout, which could trigger a fresh rally towards the next resistance aligned at 0.9224, the bearish 50-day Simple Moving Average (DMA).
An upside surprise to the NFP numbers could fuel a massive dollar rally, prompting the bullish break.
Meanwhile, the daily Relative Strength Index (RSI) currently trades flat just below the midline. A failure to defend the 21-DMA could revive the downside momentum, calling for a test of 0.9000.
USD/CHF: Hourly chart