- The USD/CHF remains almost flat in the week, up by a minimal 0.06%.
- Sentiment remains positive as Asian equities prepare for a higher open, as shown by the futures market.
- USD/CHF Price Forecast: To extend its losses towards the 100-DMA at 0.9419.
On Thursday, the USD/CHF slashed Wednesday’s gains and some more, down 0.50%, and breaching on its way south, the 50-day moving average (DMA) at 0.9594. At 0.9577, the USD/CHF reflects the US Dollar’s weakness amidst a positive market mood throughout the day.
During the New York session, stocks ended with gains. Despite the market’s rhetoric of investors’ fears about a US recession, China’s Covid-19 lockdowns, and Russia’s invasion of Ukraine, Asian equity futures are poised for a higher open. Also, a weaker than expected US Dollar, following Wednesday’s price action, when the greenback recaptured 102.000, gave back its gains, retracing 0.77%, sitting at 101.754.
That said, a headwind for the USD/CHF boosted the low-yielder Swiss franc. Furthermore, a stationary US 10-year Treasury yield at 2.911% fueled selling pressure on the USD/CHF, which fell below the 0.9600 mark.
USD/CHF Price Forecast: Technical outlook
From the daily chart perspective, the USD/CHF is consolidating with the short-term daily moving averages (DMAs), the 20 and 50 above the exchange rate, while the 100 and the 200-DMA remain below. Nevertheless, due to Wednesday’s rally towards 0.9652 and the Relative Strength Index (RSI) pushing lower, well within negative readings, a move towards the 100-DMA might be on the cards.
Therefore, the USD/CHF first support would be the April 20 high-turned-support at 0.9526. A breach of the latter would expose April 1, 2021, at 0.9472 high, followed by the 100-DMA at 0.9419.
Key Technical Levels
|Today last price||0.9577|
|Today Daily Change||-0.0052|
|Today Daily Change %||-0.54|
|Today daily open||0.963|
|Previous Daily High||0.9659|
|Previous Daily Low||0.9586|
|Previous Weekly High||0.9751|
|Previous Weekly Low||0.9545|
|Previous Monthly High||1.0064|
|Previous Monthly Low||0.9545|
|Daily Fibonacci 38.2%||0.9631|
|Daily Fibonacci 61.8%||0.9614|
|Daily Pivot Point S1||0.9591|
|Daily Pivot Point S2||0.9552|
|Daily Pivot Point S3||0.9518|
|Daily Pivot Point R1||0.9664|
|Daily Pivot Point R2||0.9698|
|Daily Pivot Point R3||0.9737|
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