- The Swiss franc extends its losses in the week, down 1.24%.
- Risk-on market mood and higher US Treasury yields weighed on the CHF.
- USD/CHF Price Forecast: A daily close above 0.9533 would open the door for a 0.9600 test.
On Thursday, the USD/CHF grinds higher amidst an upbeat market mood, up some 0.37% in the North American session. At the time of writing, the USD/CHF is trading at 0.9535.
So far, the market sentiment remains positive, as the European and US equities are trading in the green. US Treasury yields increased during the North American session, underpinning the greenback. The US Dollar Index, a gauge of the buck’s value vs. a basket of its peers, edges up 0.17%, sitting at 100.514, near the daily highs, after falling under the 100.00 threshold.
The Swiss franc fall is courtesy of market sentiment. Due to its status as a safe-haven peer, it usually depreciates in times of risk-on market mood. Also, the Swiss National Bank (SNB), one of the most actives central banks in FX, favors a weak CHF, so it’s not rare seeing it intervening in the USD/CHF and the EUR/CHF pairs.
USD/CHF Price Forecast: Technical outlook
The last two days’ USD/CHF price action kept the bullish bias on the pair, further confirmed by Wednesday’s close above 0.9480. The daily moving averages (DMAs) reacted to recent price action and turned upwards, but the Relative Strength Index (RSI) at 71.26, within the overbought territory, might put a lid on USD/CHF gains.
The USD/CHF first resistance would be June 30 2020 highs at 0.9538. A breach of the latter would expose the 0.9600 figure. Once cleared, the following supply zone would be June 5 2020 highs around 0.9650.
Key Levels to Watch
|Today last price||0.9535|
|Today Daily Change||0.0050|
|Today Daily Change %||0.53|
|Today daily open||0.9484|
|Previous Daily High||0.9537|
|Previous Daily Low||0.9454|
|Previous Weekly High||0.9443|
|Previous Weekly Low||0.9287|
|Previous Monthly High||0.946|
|Previous Monthly Low||0.915|
|Daily Fibonacci 38.2%||0.9486|
|Daily Fibonacci 61.8%||0.9505|
|Daily Pivot Point S1||0.9447|
|Daily Pivot Point S2||0.9409|
|Daily Pivot Point S3||0.9365|
|Daily Pivot Point R1||0.9529|
|Daily Pivot Point R2||0.9574|
|Daily Pivot Point R3||0.9612|
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