USD/CHF Price Analysis: Found resistance at the daily-pivot-point, at 0.9270s, retreated to 0.9240s
|- The USD/CHF bounced off Friday’s daily lows around 0.9210 as the new coronavirus variant worries ease.
- Friday’s flight to safe-haven assets boosted the prospects of the CHF and the JPY, leaving adrift the greenback.
- USD/CHF Daily pivot point at 0.9271, found sellers around that area, pushing the pair towards 0.9230s.
After losing more than 100 pips on last week’s Friday, the USD/CHF trims some of those losses during the New York session, trading at 0.9248, bouncing off 0.9210s daily lows at the time of writing. The market sentiment has improved, as omicron COVID-19 variant worries scale back after last Friday’s collapse in the financial markets.
Information throughout the weekend has the USD/CHF subdued. Headlines that crossed the wires on Friday about the new COVID-19 variant spurred a flight to safe-haven assets, benefitting the Japanese yen, the euro, and the Swiss franc, based on its status of low-yielders. That hurt, the greenback, in the crosses against the Yen and the Swiss franc, in the latter collapsing 130 pips in the Friday’s session.
That said, initial reports from South African doctors suggest the variant is associated with milder symptoms than other COVID-19 variants though it appears to be more transmissible. However, Monday’s price action seems to reflect that investors are cautious, awaiting more clarity regarding the omicron’s ability to evade vaccine-induced immunity and the severity of its illness.
Hence, in the near term, as most of the financial assets as of today, USD/CHF traders would lean in pure risk-market sentiment and central bank speakers, leaving on the side macroeconomic data as investors assess the impact of the new variant.
USD/CHF Price Forecast: Technical outlook
The USD/CHF 1-hour chart depicts the pair’s downward bias in the near term, as the hourly simple moving averages (HSMA’s) reside well above the spot price, with a downslope, and will act as dynamic resistance levels. Despite the USD/CHF pair advancing at press time, it found strong resistance at the daily central pivot point at 0.9271, previously tested early in the European session.
In the outcome of extending last Friday’s decline, the first support would be the November 26 low at 0.9213. A breach of the latter would expose the 100-day moving average at 0.9195, followed by the S1 daily pivot at 0.9184.
On the flip side, if USD/CHF bulls break above the daily pivot, that would expose the 50-HSMA at 0.9282, followed by the 100-HSMA 0.9298.
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