- 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
|Today last price||0.9603|
|Today Daily Change||-0.0055|
|Today Daily Change %||-0.57|
|Today daily open||0.9659|
|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|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.