USD/CHF Price Analysis: A 50-pip jump broke all the DMAs, clinging to a high in 0.9220s

On Thursday, the USD/CHF rallies from the 0.9170 area towards 0.9250 on safe-haven flows attributed to Russia’s invasion of Ukraine. This began during the start of the Asian session and impacted negatively on market mood. At time of press, the USD/CHF is trading at 0.9225.

During the Asian session, we had the UN security council meeting, and as the meeting was taking place, Russian President Vladimir Putin released a speech announcing a special military operation in Ukraine, aiming to de-militarize the country.

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Market’s reaction

The USD/CHF has barely moved in the initial reaction to the headline. Nevertheless, as the European session gets underway, the pair has jumped 50+ pips, reaching a daily high of 0.9247.

USD/CHF Price Forecast: Technical outlook

The USD/CHF is neutral on the daily chart from a technical perspective. During the day, so far it has broken upwards, leaving behind all the daily moving averages (DMAs), although it is worth noting that it broke above these four trading days ago.

Current geopolitical developments suggest taking a short-term look due to the volatility implied in such events. The USD/CHF one-hour chart depicts the pair broke ALL the simple moving averages (SMAs) and will lean on the February 23 high and the 200-hour SMA confluence around the 0.9212-18 as first support. As long as the pair remains above, upward moves towards the daily high at 0.9247 might be on the cards. Otherwise, bearish sentiment will overtake USD/CHF's current bullishness.

Upwards, the USD/CHF resistance levels lie at the daily high of 0.9247, followed by February 16 high at 0.9261, and February 15 daily high at 0.9274. On the flip side, the first support would be the abovementioned 0.9212-18 area, followed by the figure at 0.9200 and today’s daily low at 0.9172.