USD/CHF Price Analysis: Retraces Wednesday’s gains, back below 0.9600, on a weak USD

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.

Christian Borjon Valencia FXStreet

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

USD/CHF

Overview
Today last price	0.9577
Today Daily Change	-0.0052
Today Daily Change %	-0.54
Today daily open	0.963

Trends
Daily SMA20	0.979
Daily SMA50	0.9587
Daily SMA100	0.9414
Daily SMA200	0.9315

Levels
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

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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