USD/CHF Price Analysis: Prints a new 2-year high around 0.9539 as it aims towards 0.9600
- 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
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.
