• The Swiss franc continues its two-week rally vs. the greenback, surging almost 1.50% in two days.
  • A weaker US Dollar and a dismal mood increased appetite for the CHF, so the USD/CHF falls.
  • USD/CHF Price Forecast: After falling close to 500-pips, bulls find the 0.9550 as a solid demand zone to step in, capping the ongoing pullback.

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

USD/CHF

Overview
Today last price 0.9603
Today Daily Change -0.0055
Today Daily Change % -0.57
Today daily open 0.9659
 
Trends
Daily SMA20 0.9833
Daily SMA50 0.9553
Daily SMA100 0.9386
Daily SMA200 0.9299
 
Levels
Previous Daily High 0.9751
Previous Daily Low 0.9628
Previous Weekly High 1.0064
Previous Weekly Low 0.9694
Previous Monthly High 0.9759
Previous Monthly Low 0.9221
Daily Fibonacci 38.2% 0.9675
Daily Fibonacci 61.8% 0.9704
Daily Pivot Point S1 0.9607
Daily Pivot Point S2 0.9556
Daily Pivot Point S3 0.9484
Daily Pivot Point R1 0.9731
Daily Pivot Point R2 0.9803
Daily Pivot Point R3 0.9855

 

 

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