USD/CHF technical analysis: Bulls remain in control near 200-DMA, multi-week tops

Bulls shrug off a subdued USD demand and the prevailing risk-off mood.
The upside is likely to be capped near ascending trend-channel resistance.

Haresh Menghani FXStreet

The USD/CHF pair built on the overnight goodish intraday up-move and continued gaining positive traction for the second consecutive session to hit fresh multi-week tops during the early North-American session on Tuesday.

The intraday bullish momentum helped the pair to move beyond the very important 200-day SMA, which should now be seen as a key trigger for bullish traders and sets the stage for an extension of the appreciating move.

Looking at the broader picture, the pair remains well within a six-week-old ascending trend-channel formation. This coupled with bullish technical indicators on hourly/daily charts further add credence to the constructive outlook.

However, the recent escalation of geopolitical tensions, which tend to underpin demand for perceived safe-haven currencies like the Swiss Franc, warrant some caution for bullish traders amid a weaker tone surrounding the USD.

Hence, any subsequent up-move is likely to confront a stiff resistance near the top end of the mentioned ascending trend-channel, around the parity mark, which should cap the upside ahead of the highly anticipated FOMC decision.

On the flip side, immediate support is pegged near the 0.9925 horizontal level ahead of the 0.9900 handle, which if broken now seems to accelerate the fall further towards trend-channel support, currently near mid-0.9800s.

USD/CHF daily chart

USD/CHF

Overview
Today last price	0.9945
Today Daily Change	0.0016
Today Daily Change %	0.16
Today daily open	0.9929

Trends
Daily SMA20	0.9859
Daily SMA50	0.9842
Daily SMA100	0.9916
Daily SMA200	0.995

Levels
Previous Daily High	0.994
Previous Daily Low	0.9864
Previous Weekly High	0.9947
Previous Weekly Low	0.9854
Previous Monthly High	0.9976
Previous Monthly Low	0.9659
Daily Fibonacci 38.2%	0.9911
Daily Fibonacci 61.8%	0.9893
Daily Pivot Point S1	0.9882
Daily Pivot Point S2	0.9835
Daily Pivot Point S3	0.9806
Daily Pivot Point R1	0.9958
Daily Pivot Point R2	0.9987
Daily Pivot Point R3	1.0034

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD accelerates losses, focus is on 1.1800

EUR/USD’s selling pressure is gathering pace now, opening the door to a potential test of the key 1.1800 region sooner rather than later. The pair’s pullback comes on the back of marked gains in the US Dollar following US data releases and the publication of the FOMC Minutes later in the day.

GBP/USD turns negative near 1.3540

GBP/USD reverses its initial upside momentum and is now adding to previous declines, revisiting at the same time the 1.3540 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold picks pace, flirts with $5,000

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and pushing higher towards the key $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Fed Minutes to shed light on January hold decision amid hawkish rate outlook

The Minutes of the Fed’s January 27-28 monetary policy meeting will be published today. Details of discussions on the decision to leave the policy rate unchanged will be scrutinized by investors.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.