USD/CHF Price Analysis: Retreats from parity and hovers around 0.9930s on profit-taking

The USD/CHF plunged following the release of US Retail Sales, which came better than expected, though market players booked profits ahead of a later speech of Fed Chair Jerome Powell. At 0.9929, the USD/CHF is eyeing to re-test on March 23, 2020, daily low at around 0.9901.

Risk-on prevails as the market mood driver on Tuesday. Global equities are still trading in the green, while the greenback remains softer, despite better than expected US economic data. US Treasury yields remain elevated, with the 10-year Treasury yield rising seven and a half basis points, sitting at 2.960%, shy of the 3% threshold.

The US Dollar Index is getting hammered, influenced by a strong euro, losing 0.70%, currently at 103.409.

During the overnight session, the USD/CHF opened above the parity, though plummeted below the 50, 100, and 200-hour simple moving averages (SMAs), as some ECB speakers, led by Klaus Knot, who said that the ECB could hike 50-bps depending on data available.

USD/CHF Price Forecast: Technical outlook

The USD/CHF remains upward biased, despite retreating almost 1% on Tuesday. The daily moving averages (DMAs) reside well below the exchange rate. Also, the Relative Strenght Index (RSI), around 67.91, exited from overbought territory, opening the door for further upward pressure on the major.

That said, the USD/CHF first resistance level would be May 10 daily high at 0.9975. A breach of the latter would expose the parity at 1.000, followed by the YTD high at around 1.0064.

Key Technical Levels