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USD/CHF Price Forecast: Dollar rejected at 200-day SMA, drops towards 0.7900

  • USD/CHF falls 0.31% to 0.7906 despite SNB attempts to weaken the Swiss Franc.
  • Break below 0.7897 exposes downside toward 0.7800 and 0.7750 support levels.
  • RSI signals bullish momentum may resume if buyers reclaim levels above 0.7950.

The USD/CHF pair trades more softly during the North American session on Thursday despite the Swiss National Bank's (SNB) verbal intervention in the forex markets to depreciate the Swiss Franc (CHF). Broad US Dollar (USD) weakness pushed the major down 0.31% to 0.7906.

USD/CHF Price Forecast: Technical outlook

The technical picture shows that USD/CHF buyers emerged at around 0.7830, pushing the pair higher amid US Dollar strength on Wednesday. The pair hit an eight-week high at 0.7957 on Thursday, slightly above the 200-day Simple Moving Average (SMA) at 0.7951, which increased the chances for further upside.

Since then, the USD/CHF has retreated towards the 0.7900 level, but short-term momentum seems poised for further gains, as indicated by the Relative Strength Index (RSI).

Conversely, if USD/CHF falls below the 100-day SMA at 0.7897, it opens the path to test the 50-day SMA at 0.7800. On further weakness, the next area of interest would be the March 6 daily low of 0.7760.

USD/CHF Price Chart – Daily

USD/CHF Daily Chart

Swiss Franc Price This week

The table below shows the percentage change of Swiss Franc (CHF) against listed major currencies this week. Swiss Franc was the strongest against the Canadian Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD-1.18%-1.21%-1.09%0.06%-0.89%-0.99%0.04%
EUR1.18%-0.01%0.02%1.24%0.29%0.18%1.23%
GBP1.21%0.00%0.17%1.25%0.31%0.18%1.30%
JPY1.09%-0.02%-0.17%1.18%0.20%0.13%1.16%
CAD-0.06%-1.24%-1.25%-1.18%-0.99%-1.03%-0.01%
AUD0.89%-0.29%-0.31%-0.20%0.99%-0.12%0.94%
NZD0.99%-0.18%-0.18%-0.13%1.03%0.12%1.01%
CHF-0.04%-1.23%-1.30%-1.16%0.01%-0.94%-1.01%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Swiss Franc from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CHF (base)/USD (quote).

Author

Christian Borjon Valencia

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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