USD/CHF Price Analysis: Bulls reclaim 0.9200 but face resistance at the 100-DMA
|- Positive risk sentiment weighs on the Swiss franc, boosting the greenback.
- The US Dollar advances some 0.27% ahead of the release of the Fed monetary policy statement.
- USD/CHF is upward biased but faces strong resistance at the 100-DMA
The USD/CHF surges in the North American session reclaim the 0.9200 figure ahead of the FOMC monetary policy decision. At press time, the USD/CHF is trading at 0.9207.
Risk sentiment is positive, portrayed by European and US equities trading in the green, despite Ukraine and Russian tensions not easing. However, the expectations of a hawkish hold of the Federal Reserve keep USD bulls in charge of the pair.
USD/CHF Price Forecast: Technical outlook
In the Asian session, the USD/CHF remained subdued in a narrow range of 10-pips range, within 0.9170-80. However, as European traders got to their desks, USD bulls took control of the pair, propelling an upward move that reclaimed the 0.9200 figure.
From a technical perspective, the USD/CHF is neutral-upward biased. At press time, the pair faces strong resistance at the 100-day moving average (DMA) at 0.9211. A breach of that level would expose the January 11 daily high at 0.9278, followed by the confluence of a downslope trendline and December 15, 2021, around 0.9294-0.9305.
On the flip side, the USD/CHF first support would be 0.9200. If broken, the next support would be the 200-DMA at 0.9160, adding further downward pressure on the pair, sending it towards November 2, 2021, a daily low at 0.9085.
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