USD/CHF Price Analysis: USD bulls lift the USD/CHF above the 200-hour SMA, steady around 0.9260
|- The Swiss franc weakens as market sentiment improves, boosting riskier assets.
- High US T-bond yields boost the greenback against its safe-haven counterparts like the CHF and the JPY.
- USD/CHF Price Forecast: Has an upward bias, as all the hourly SMA reside below the spot price.
The USD/CHF is surging during the New York session, up 1%, trading at 0.9264 at the time of writing. Positive market sentiment amid reports that the COVID-19 omicron variant cases are mild keeps market participants looking for riskier assets in detriment to safe-haven currencies, like the Swiss franc and the Japanese yen.Additionally, higher US T-bond yields underpin the buck, with the US Dollar Index measuring the greenback’s performance against a basket of six rivals, advancing 0.23%, at 96.34.
An absent economic docket in the US and the lack of Fed speak as the US central bank is in its blackout period ahead of the December FOMC meeting maintain investors focused on the release of the Consumer Price Index (CPI) on Friday. That in part, as Fed Chief Powell commented in the last week that the word “transitory” needs to be removed when talking about inflation, triggering a spike on US bond yields and to the US Dollar Index, which rose near the 97.00 handle on the US central bank Chair words.
Therefore, the USD/CHF pair would lean in US macroeconomic data and market sentiment dynamics.
USD/CHF Price Forecast: Technical outlook.
At press time in the 1-hour chart, the USD/CHF pair has an upward bias. On its way north, the pair has broken the resistance-daily pivot levels, with the R3 daily pivot previous resistance-turned-support at 0.9261.
According to price action, accumulation occurred around the 0.9213-0.9223 area before breaking higher. That area would be strong support in the outcome of USD/CHF bears trying to push prices lower. Nevertheless, the 1-hour simple moving averages (HSMA’s) reside below the spot price, confirming the bullish bias, with the 50-HSMA crossing over the 100-HSMA.
In the outcome of extending the upward move, the first resistance would be the 0.9300 figure. The breach of the latter would expose the November 29 high at 0.9359, followed by the 0.9400 psychological level.
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