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.
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
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.
