USD/CHF Price Analysis: Stops the bleeding at 0.9700 and jumps towards 0.9750 on broad US dollar strength


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  • 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

USD/CHF

Overview
Today last price 0.9762
Today Daily Change 0.0032
Today Daily Change % 0.33
Today daily open 0.9731
 
Trends
Daily SMA20 0.9821
Daily SMA50 0.954
Daily SMA100 0.9375
Daily SMA200 0.9294
 
Levels
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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