USD/CHF Price Analysis: Extends the rally above 0.9200 amid the overbought condition

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USD/CHF Price Analysis: Extends the rally above 0.9200 amid the overbought condition
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The USD/CHF pair extends its upside to 0.9210 on Wednesday during the early European session.

USD/CHF trades on astrongernotearound0.9210 ahead of the Fed rate decision on Wednesday. The pair keeps the bullish vibewith the overbought RSI condition. The first upside barrierisseenat 0.9245; the initial support levelislocatedat 0.9155. A renewed US Dollar demand creates a tailwind to amajorpair.Furthermore, the Fedis widely expectedto keep the policy rate in its current 5.25%–5.50% range on Wednesday andcontinue tomaintain the hawkish stance, whichprovides some support tothe Greenback.

9300 psychological round mark. The next upside targetisseenat a high of March 16, 2023, at 0.9340. On the flip side, the initial support level for the cross will emerge near a high of April 29 at 0.9155. The additional downside filter to watch is the 50-period EMA at 0.9134. Thekeycontention level islocatedat the 0.9100–0.9110 zone, representing the psychological figure and the 100-period EMA. A breach of the mentioned level will see a drop to the lower limit of the Bollinger Band at0.9075.

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