- The Swiss franc gained more than 2.50% vs. the greenback.
- A dampened market mood and a strong US dollar capped the USD/CHF nosedive in the week.
- USD/CHF Price Forecast: Although the major held a massive loss in the week, it remains upward biased unless USD/CHF bears push the pair below the 0.9700 mark.
The USD/CHF is trimming some of its losses, bouncing off the weekly lows at around 0.9700 and pushing to reclaim 0.9750, amidst a dismal sentiment portrayed by US equities recording losses. Also, broad US dollar strength is a tailwind for the pair, despite hefty losses in the 10-year US Treasury yield, which fell from 3% to 2.785%, near weekly lows. At 0.9762, the USD/CHF is gaining 0.35% and eyes to pierce the 20-DMA at around 0.9827.
From a technical perspective, the USD/CHF tumbled in total 250-pips after reaching parity on May 12. USD/CHF traders would need to be aware that Friday’s uptick spurred a reaction in the Relative Strength Index (RSI), which plunged from overbought levels to the 50-midline, and as of writing, it is aiming up at 51.28.
USD/CHF Price Forecast: Technical outlook
That said, the USD/CHF remains upward biased, as the daily moving averages (DMAs) are still below the spot price. The USD/CHF first resistance would be the figure at 0.9800. A breach of the latter would expose the 20-DMA at 0.9827, followed by March 23, 2020, a daily high at 0.9901, and then the parity.
On the flip side, the USD/CHF first support would be 0.9700. Break below would expose the 0.9600 mark, closely followed by the 50-DMA at 0.9545.
Key Technical Levels
|Today last price||0.9762|
|Today Daily Change||0.0032|
|Today Daily Change %||0.33|
|Today daily open||0.9731|
|Previous Daily High||0.9897|
|Previous Daily Low||0.9697|
|Previous Weekly High||1.0049|
|Previous Weekly Low||0.9872|
|Previous Monthly High||0.9759|
|Previous Monthly Low||0.9221|
|Daily Fibonacci 38.2%||0.9773|
|Daily Fibonacci 61.8%||0.9821|
|Daily Pivot Point S1||0.9653|
|Daily Pivot Point S2||0.9575|
|Daily Pivot Point S3||0.9454|
|Daily Pivot Point R1||0.9853|
|Daily Pivot Point R2||0.9975|
|Daily Pivot Point R3||1.0053|
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