USD/CHF Price Analysis: Clings to the 0.9700 mark after reaching another fresh 20-month high

The USD/CHF advances In the week so far gain 1.50%.
During the day, the US Dollar Index reached a 20-year high at around 103.928
USD/CHF Price Forecast: Forming an inverted hammers

Christian Borjon Valencia FXStreet

The USD/CHF surged some 100-pips and reached a fresh two-year high around 0.9759 during the day, though it has retraced but stays above the 0.9700 figure in the North American session. At the time of writing, the USD/CHF is trading at 0.9717, up some 0.27%.

The mood remains positive during the day, as European bourses closed with gains and US equities are set to finish in the green for the second consecutive day. China’s coronavirus outbreak seems to get under control, while geopolitics-wise, the Ukraine-Russia conflict continues to escalate.

On Thursday, the USD/CHF surged 90-pips and reached a two-year high. Late in the North American session, the pair retreated towards the 0.9710s area as traders booked profits as April’s about to end.

In the meantime, the US Dollar Index, a gauge of the greenback’s measure of value against other currencies, edges up some 0.61% sitting at 103.627. The US 10-year Treasury yield edges up and is gaining three basis points, sitting at 2.865%.

USD/CHF Price Forecast: Technical outlook

On Wednesday’s note, I wrote that the “USD/CHF uptrend appears to be overextended,” and despite that conditions, alongside the Relative Strength Index (RSI) showing that the pair is overbought with readings around 81.00, the pair recorded another leg-up reaching a fresh two-year high. Nevertheless, Thursday’s price action of the USD/CHF appears to form an inverted hammer in an uptrend, usually, a sign of exhaustion and possible consolidation of the USD/CHF near the 0.9660s-9750 area.

If the USD/CHF extends its rally, the next resistance would be April’s 28 daily high at 0.9759. A breach of the latter would expose April’s 2020 swing high at 0.9802, followed by March’s 23, 2020 daily high at 0.9900.

On the flip side, the USD/CHF first support would be the 0.9700 mark. Once cleated, the next support would be the April 26 daily high at 0.9626. Break below would expose the April 26 daily low at 0.9564, followed by the June 30, 2020 cycle high-turned-support at 0.9533.

Key Technical Levels

USD/CHF

Overview
Today last price	0.9717
Today Daily Change	0.0022
Today Daily Change %	0.23
Today daily open	0.969

Trends
Daily SMA20	0.9418
Daily SMA50	0.9331
Daily SMA100	0.9268
Daily SMA200	0.9235

Levels
Previous Daily High	0.9701
Previous Daily Low	0.9615
Previous Weekly High	0.9593
Previous Weekly Low	0.9421
Previous Monthly High	0.946
Previous Monthly Low	0.915
Daily Fibonacci 38.2%	0.9668
Daily Fibonacci 61.8%	0.9648
Daily Pivot Point S1	0.9636
Daily Pivot Point S2	0.9582
Daily Pivot Point S3	0.955
Daily Pivot Point R1	0.9723
Daily Pivot Point R2	0.9755
Daily Pivot Point R3	0.9809

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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