USD/CHF hits monthly highs above 0.9310 as the dollar strengthens

Swiss franc confirms weekly losses across the board.
USD/CHF could post the highest weekly close since April 2021.

Matías Salord FXStreet

The USD/CHF is rising for the second day in a row on Friday and recently reached a peak at 0.9330, the highest level since late January. The Swiss franc is consolidating weekly closes versus the dollar and also against the euro.

The war and the Fed

US President Biden said the US aims to end normal trade relations with Russia, among other announcements. In Ukraine, Russian forces increased bombardments. Earlier, comments from Russian President Putin about a shift in conversations with Ukraine were not followed by more details.

In the economic field, the focus turns to the Federal Reserve. The FOMC will have its policy meeting next week, with a rate hike priced in. "With the economy growing strongly, creating jobs in significant numbers and experiencing the fastest rate of price inflation in 40 years, not even the uncertainty and financial market volatility caused by Russia's invasion of Ukraine will deter the Fed from hiking on Wednesday. We continue to look for six 25bp hikes this year and two more in 2023", commented analysts at ING.

The Swiss National Bank is seen as holding on to negative rates for the moment, particularly after the recent decline in EUR/CHF. The pair is about to end the week sharply higher, recovering from levels under parity, the lowest since 2015.

USD/CHF poised to highest weekly close in almost a year

The USD/CHF is trading near the recent top. A close around current levels would be positive for the US dollar and the highest in months. The pair needs a clear break of the 0.9330 area to point to more gains. A failure around current levels would open the doors for a bearish correction. Critical support is seen at 0.9140, an uptrend line.

USD/CHF weekly chart

USD/CHF

Overview
Today last price	0.9324
Today Daily Change	0.0018
Today Daily Change %	0.19
Today daily open	0.9306

Trends
Daily SMA20	0.9225
Daily SMA50	0.9211
Daily SMA100	0.9209
Daily SMA200	0.9193

Levels
Previous Daily High	0.9309
Previous Daily Low	0.9255
Previous Weekly High	0.9278
Previous Weekly Low	0.915
Previous Monthly High	0.9297
Previous Monthly Low	0.915
Daily Fibonacci 38.2%	0.9289
Daily Fibonacci 61.8%	0.9276
Daily Pivot Point S1	0.9271
Daily Pivot Point S2	0.9236
Daily Pivot Point S3	0.9216
Daily Pivot Point R1	0.9325
Daily Pivot Point R2	0.9344
Daily Pivot Point R3	0.938

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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