USD/CHF Price Analysis: Double-top target reached at 0.9200

The USD/CHF slides as the New York session wanes, down some 0.43%, trading at 0.9206 during the day at the time of writing. The market sentiment is upbeat, as portrayed by US stock indices posting gains between 0.31% and 1.18%, as omicron worries abate. Pfizer and BioNTech SE said that early lab studies demonstrated that a third dose of the COVID-19 vaccines neutralizes the variant.

In the meantime, the US Dollar Index, which tracks the greenback’s performance against a basket of six rivals, declines sharply, down some 0.44%, sitting at 95.94, a headwind for the USD/CHF pair, which usually rises amid risk-on market conditions.

During the overnight session, the USD/CHF dropped from daily highs around 0.9250s, courtesy of a technical double-top chart pattern, down to 0.9194, the double’s top target. Then the USD/CHF reclaimed the 0.9200 figure on profit-taking.

USD/CHF Price Forecast: Technical outlook

The USD/CHF hourly chart shows the pair in the near-term has a downward bias, as Wednesday’s price action broke crucial support levels, like the hourly-simple moving averages (SMA’s), daily pivot points, and the December 2 cycle high resistance-turned-support at 0.2121. 

At press time, the USD/CHF is exchanging hands below Wednesday’s S2 daily pivot around 0.9207.

In the outcome of extending the slide further down, the first support would be the daily low at 0.9194. The USD/CHF, the next stop on the way down, would be Wednesday’s S2 daily pivot at 0.9184, and then December 6 swing low at 0.9172.

On the other hand, a sustained break above 0.9207 would push the pair towards the 200-hour SMA at 0.9220, followed by the confluence of Wednesday’s S2 daily pivot and December 7 low around the 0.9225-30 range.