After forming a hammer at about 0.9200, USD/CHF surged off weekly lows. The pair is now upward inclined and may challenge the level of 0.9300 shortly.

Following Thursday’s price action, which created a hammer and exacerbated the pair rebound to current exchange rates, the pair developed a base. They rallied back to the 0.9200 regions on Friday. The USD/CHF exchange rate is now trading at 0.9246, up 0.35 percent from the opening price.

The pair stays neutral to negatively biased over the long term, but it can print a leg up and challenge the 50-day Exponential Moving Average (EMA) at 0.9294. In contrast to the Rate of Change (RoC), which is neutral, the Relative Strength Index (RSI) entered the bullish territory, showing that purchasing pressure is increasing.

Though there are negative possibilities, the USD/CHF 4-hour chart is bottoming out in the short term. As I type, the USD/CHF has separated from the intersection of the 50/100/20-EMAs and is challenging the 200-Exponential Moving Average (EMA) at 0.9247.

A bullish continuation was supported by oscillators like the Relative Strength Index (RSI) and the Rate of Change (RoC). Still, significant resistance levels must be breached to solidify the USD/CHF upward bias further.

Therefore, the 200-EMA would act as the initial barrier for the pair, followed by the value of 0.9300. A clear breach might start a move higher toward the psychological 0.9400 level and the high of January 12 at 0.9360.

4-hour USD/CHF chart