USD/CHF Price Analysis: Buyers to step in around 0.9550 after falling from YTD highs

The USD/CHF continues its free-fall, courtesy of a softer greenback amidst investors’ negative mood, which caused global equities to fall and the buck to lose the 102.000 mark. At the time of writing, the USD/CHF is trading at 0.9605, recording minimal gains of 0.13% as the Asian session begins.

On Tuesday, the market sentiment remained sour throughout the day. US equities finished with losses, except for the Dow Jones. The US Dollar Index, a gauge of the greenback’s value vs. a basket of peers, edged lower, recording a fresh four-week low at around 101.768, down so far in the week almost 1.30%.

USD/CHF Price Forecast: Technical outlook

Tuesday’s session left the USD/CHF trading above the 50-day moving average (DMA) at 0.9558. It’s worth noting that the confluence of Bollinger’s band lower band with the previously-mentioned moving average is a zone that could find some buyers stepping in as the greenback remains in an uptrend. Nevertheless, the two-week pullback weighed on the USD/CHF, which has fallen almost 500 pips from the YTD high at the parity; however, the RSI, albeit in bearish territory, begins to aim higher, meaning the major might consolidate before resuming upwards/downwards.

Upwards, the USD/CHF first resistance would be the 0.9700 mark. If USD/CHF bulls reclaim the aforementioned, a re-test of the 20-DMA at 0.9823 is on the cards, but firstly, a break above the 0.9800 mark is needed before extending the pair’s rally.

On the flip side, the USD/CHF first support would be 0.9600. Break below would expose the confluence of the 50-DMA and Bollinger’s band lower band around 0.9558. Once cleared, the next demand zone would be March 16, 0.9533 daily high.

Key Technical Levels