USD/CHF Price Analysis: Snaps three days of losses but struggles around 0.9300
- The USD/CHF erases earlier losses but faces solid resistance, which could push the pair lower.
- The market sentiment shifted to a risk-off on an attack of a Saudi Aramco oil facility in Jeddah.
- USD/CHF Price Forecast: The USD/CHF is upward biased per the daily chart, but the pair is bearish in the near term, as shown by the 1-hour chart.
The USD/CHF snaps four days of losses and jumped off the day’s lows, around 0.9260, amid a mixed market mood and expectations of 50-bps increases by the US central bank on its May monetary policy meeting. At the time of writing, the USD/CHF is trading at 0.9304.
A risk-off market mood keeps US equity indices pressured while European bourses fluctuate. The greenback erases earlier losses, up 0.04%, sitting at 98.819, while US Treasury yields skyrocket, with the 10-year up 14 basis points at 2.489%, but short of daily highs around 2.503%.
The market mood dampened on reports that a Saudi Aramco oil facility located in Jeddah, Saudi Arabia, was hit by a missile launched by Yemen’s rebel Houthi militia on Friday, reports on social media suggested.
Read more: Saudi Aramco oil facility in Jeddah hit by Yemeni Houthi rebel missile
Overnight, the USD/CHF dropped from 0.9300ish towards 0.9260, the top of an eleven-month-old downslope trendline, previous resistance-turned-support, and jumped off as the North American session evolves, amid a softer demand for the greenback.
USD/CHF Price Forecast: Technical outlook
The USD/CHF daily chart depicts the pair as upward biased, despite breaking below the 0.9373 mark, though it would be resistance ahead of the YTD high around 0.9460.
However, the 1-hour chart depicts the USD/CHF as bearish biased in the near term. The USD/CHF is probing a downslope trendline drawn from March 16 highs, unsuccessfully tested two previous times. If the trendline holds, the USD/CHF first support level would be 0.9300. Breach of the latter would expose Friday’s daily low at 0.9260, followed by March 9 low at 0.9250.
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
