USD/CHF Price Analysis: Will USD bulls push the pair to parity?

The USD/CHF recovered all the ground shed post-Fed and is gaining 1.32%.
A dismal market mood, spurred by the central bank’s tightening, and China’s covid crisis, threatens to disrupt the global economic recovery.
USD/CHF Price Forecast: If USD/CHF bulls reclaim 0.9900, a move towards parity is on the cards.

Christian Borjon Valencia FXStreet

The Swiss franc is losing ground against the buck, and the USD/CHF continues to reach a new YTD high after each of the last seven trading sessions amidst a dismal market mood. At 0.9852, the USD/CHF is rallying in the day, though retreated from early daily and current YTD highs around 0.9890.

Wall Street is in a middle of a stock blood bath, as reflected by the market sentiment. Central bank “aggressive” tightening, elevated US Treasury yields and a possible economic slowdown in China, spurred by the zero-tolerance Covid-19 policy, keep investors on their toes.

In the case of the USD/CHF, the pair reversed Wednesday’s profits after dipping to weekly lows reached on May 2 at around 0.9713 but staged a comeback and at the time of writing, is probing May 4 daily high at 0.9852.

USD/CHF Price Forecast: Technical outlook

The USD/CHF is upward biased from a daily chart perspective, as shown by the daily moving averages (DMAs) sitting below the exchange rate. However, the Relative Strength Index (RSI), well within the overbought territory at 79.01, might suggest that the pair is about to peak, nevertheless, it is aiming higher.

With that said, the USD/CHF’s first resistance would be March’s 23 daily high at 0.9901. Once cleared, the next step would be the parity at 1.000.

USD/CHF

Overview
Today last price	0.9852
Today Daily Change	0.0128
Today Daily Change %	1.32
Today daily open	0.9722

Trends
Daily SMA20	0.9536
Daily SMA50	0.9386
Daily SMA100	0.9294
Daily SMA200	0.925

Levels
Previous Daily High	0.9853
Previous Daily Low	0.9721
Previous Weekly High	0.9759
Previous Weekly Low	0.9547
Previous Monthly High	0.9759
Previous Monthly Low	0.9221
Daily Fibonacci 38.2%	0.9771
Daily Fibonacci 61.8%	0.9802
Daily Pivot Point S1	0.9678
Daily Pivot Point S2	0.9634
Daily Pivot Point S3	0.9546
Daily Pivot Point R1	0.981
Daily Pivot Point R2	0.9897
Daily Pivot Point R3	0.9941

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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