USD/CHF Price Analysis: Struggles at the confluence of the 50 and the 100-DMA, bears eye the 200-DMA

The USD/CHF fall continues for the second consecutive day, trading at 0.9177 during the New York session at the time of writing. The Santa Rally arrived, as shown by US equities gaining between 0.69% and 0.85%, as market mood improved. Since Wednesday, investors’ confidence rose when South Africa reported that people infected with the Omicron variant are 80% less likely to be hospitalized. Additionally, the US Food and Drug Administration (FDA) approved Covid-19 emergency treatments to Pfizer and Merck in the last two days, spurring another leg up in stocks.

Risk-sensitive currencies are the day’s gainers in the FX market, led by GBP, the AUD, and the NZD, while the laggards are the greenback and the JPY.

In the meantime, the US Dollar Index, which tracks the greenback’s performance against a basket of six rivals, falls 0.05%, down to 96.03.

USD/CHF Price Forecast: Technical outlook

The USD/CHF stills range-bound, even though it broke below the confluence of the 50 and the 100-day moving averages (DMAs) but so far has been unable to break below the 200-DMA at 0.9175.

On the downside, if the USD/CHF extends its declines, the first support would be the 200-DMA at 0.9176. the breach of the latter would expose the November 30 daily low at 0.9157, followed by a test of the 0.9100 figure.

To the upside, the USD/CHF first resistance would be 0.9200. A decisive break above that level could pave the way for further upside. The next resistance would be 0.9250, followed by the December 15 swing high at 0.9294 and the 0.9300 figure.