USD/CHF Price Analysis: Break of a 4-month old trendline, opens the door for a re-test of 0.9473
- USD/CHF extends its rally to four consecutive days, marching towards 0.9400.
- The US Dollar Index climbs towards 96.90, ahead of FOMC minutes.
- USD/CHF: A break of a 4-month old downslope resistance trendline opened the door for a renewed test of 2021 year-to-date high.
The USD/CHF extends its gains for four days in a row, advancing firmly towards the 0.9400 figure, up 0.26%, trading at 0.9356 during the New York session at the time of writing. A risk-off market mood maintains safe-haven currencies firmly bid, except for the Swiss franc and the Japanese yen, posting losses against the buck.
In the meantime, the US Dollar Index (DXY), which tracks the greenback’s performance against a basket of its peers, advances 0.43%, sitting at 96.90.
USD/CHF Price Forecast: Technical outlook
The USD/CHF has an upward bias in the daily chart, as shown by the daily moving averages (DMA’s) with an upslope, residing well beneath the spot price. Also, Wednesday’s break of an eight-month-old downslope resistance trendline indicates that the USD/CHF is firmly heading towards the 2021 year-to-date high at 0.9473.
The first resistance on the way north would be the psychological 0.9400 figure. A breach of the former would expose the April 1 swing high at 0.9473, followed by the June 29, 2020 cycle high at 0.9528.
On the flip side, failure to break over the abovementioned would expose the 0.9300 figure. A break below that level would reveal the confluence of the 50-DMA and the November 19 swing low around the 0.9225-50 region, which once gave way, it would leave the 0.9200 as the last line of defense for USD bulls.
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Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
