• As shown by the USD/CHF dropping below the parity, the Swiss franc recovers some ground vs. the greenback, gaining almost 0.90%.
  • A positive market mood keeps the US dollar under pressure.
  • USD/CHF Price Forecast: Drops on profit-taking but remains upward biased.

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

USD/CHF

Overview
Today last price 0.9929
Today Daily Change -0.0094
Today Daily Change % -0.94
Today daily open 1.0018
 
Trends
Daily SMA20 0.9771
Daily SMA50 0.9506
Daily SMA100 0.9354
Daily SMA200 0.9284
 
Levels
Previous Daily High 1.0064
Previous Daily Low 1.0008
Previous Weekly High 1.0049
Previous Weekly Low 0.9872
Previous Monthly High 0.9759
Previous Monthly Low 0.9221
Daily Fibonacci 38.2% 1.0029
Daily Fibonacci 61.8% 1.0043
Daily Pivot Point S1 0.9996
Daily Pivot Point S2 0.9973
Daily Pivot Point S3 0.9939
Daily Pivot Point R1 1.0052
Daily Pivot Point R2 1.0087
Daily Pivot Point R3 1.0109

 

 

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