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Swiss franc assets experienced a significant barricade near 0.9280 in a risk-appetite theme.
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A Double Top formation indicates a failed attempt of exploring fresh upside.
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The RSI (14) is failing to shift into the bullish range of 60.00-80.00.
The USD/CHF pair is likely to continue its downside journey below the immediate support of 0.9267 as investors have underpinned the risk-appetite theme in the market. The Swiss Franc asset has sensed significant barricades around 0.9280, which might infuse more pressure on the US Dollar ahead.
The US dollar index (DXY) is looking to retest its six-month low of 103.05 amid the risk-on profile as the Federal Reserve (Fed) is expected to slow the pace of interest rate hikes after the release of downbeat United States average hourly earnings data.
The formation of a double top chart pattern on the four-hour scale near 0.9400 has put a lot of selling pressure on USD/CHF. The chart pattern mentioned above indicates a failed attempt to explore a new uptrend due to weak buying interest. Also, the 200-period exponential moving average (EMA) near 0.9377 is acting as a major barrier for the USD.
It is worth noting that the Relative Strength Index (RSI) (14) has encountered resistance while moving into the 60.00-80.00 range, indicating that the upside bias is no longer strong.
For further downside, the Swiss Franc bulls need to push the asset below December 30 low around 0.9200, which will drag the asset towards March 1 low at 0.9150 followed by January 21 low at 0.9108.
On the flip side, a decisive break above January 6 high at 0.9410 will drive the major towards December 6 high at 0.9456. A breach above the latter will send the major to psychological resistance around 0.9500.
USD/CHF four-hour chart
USD/CHF
