USD/CHF Price Analysis: Double top in the hourly chart opens the door towards 0.9280
|- The USD/CHF erases Monday losses courtesy of market sentiment improvement and a softer USD.
- Falling US Treasury yields undermine the greenback, as the DXY falls below the 99.00 mark.
- USD/CHF Price Forecast: Upward biased in the daily chart, but a double top in the hourly chart, suggest a correction towards 0.9280.
The USD/CHF erases Monday’s gains amid an improved market mood courtesy of advancement in peace talks in Eastern Europe and a softer US dollar, underpinned by falling US Treasury yields. At the time of writing, the USD/CHF is trading at 0.9304.
Reflection of the greenback’s weakness is portrayed by the US Dollar Index, falling almost 1%, sitting at 98.246. US Treasury yields eased from highs, a headwind for the USD/CHF.
The USD/CHF remained buoyant overnight in the Asian and early European session and reached a daily high at 0.9373. But headlines that Russia-Ukraine negotiations progressed, and the possibility of a Putin – Zelenskiy reunion, improved the market mood; thus, traders rushed out from US dollars which lifted the prospects of the Swiss franc, dragging the pair towards lows of 0.9310s.
USD/CHF Price Forecast: Technical outlook
The daily chart depicts the USD/CHF as upward biased, but Tuesday’s price action threatens to engulf the previous bullish candle, which could lead to further losses.
Meanwhile, the USD/CHF 1-hour chart depicts the formation of a double top near the 0.9373 area, double-tested on Monday and Tuesday, which pushed the USD/CHF below the double-top neckline, which is located at 0.9326, exposing the 0.9300
That said, the USD/CHF first support would be 0.9300. Breach of the latter would expose the double-top measured target at 0.9280.
Hourly chart
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