USD/CHF Price Analysis: Retraces Tuesday’s gains but clings to 0.9250
- The USD/CHF is climbing in the week, so far up 1%.
- Broad US dollar weakness boosts the prospects of the Swiss franc.
- USD/CHF Technical Outlook: Neutral-upwards due to the location of the DMAs below the spot price.
USD/CHF slides for the first time in the week, as the greenback nose-dives against most G8 currencies, amid an improved market mood caused by Ukraine’s disposal to reach a diplomatic solution with Russia. At press time, the USD/CHF is trading at 0.9260 during the North American session.
In the meantime, European equity indices are set to end their trading session in the green. The US stock market rallies sharply, snapping four consecutive days of losses. Meanwhile, the US Dollar Index, a gauge of the buck’s value vs. a basket of six rivals, reflects market players’ appetite, down more than 1%, and just under the 98 mark at 97.98, in a violent swing reversing two full days of gains.
USD/CHF overnight seesawed around 0.9290-0.9300s weekly highs, as the Asian session traded mainly in risk-off market sentiment. Once Europe opened, the CHF strengthened vs. the US Dollar, reaching a daily low at 0.9250 and stabilizing around the 0.9250-60 region.
USD/CHF Price Forecast: Technical outlook
The USD/CHF pair remains range-bound, with a new trading range in the 0.9250-0.9300 area, leaving below the 0.9200-50 region. Nevertheless, the location of the daily moving averages (DMAs) below the spot price, although almost horizontal, suggest the pair is neutral-upwards, but it would need a daily close above 0.9300 so that USD/CHF bulls could remain hopeful of reaching higher prices.
The USD/CHF first resistance would be the 0.9300 mark. Breach of the latter would expose 0.9343 January 31 daily high, followed by November 24, 2021, daily high at 0.9373.
