Marches firmly towards solid resistance around 0.9800

  • The USD/CHF is registering gains of 1.33% during the week.
  • Fragile market sentiment keeps investors flowing towards and outwards of safe-haven peers, like the US dollar.
  • USD/CHF Price Forecast: Range-bound in a 30 pip range, at around 0.9735-65 area.

The USD/CHF climbs for the fourth consecutive day but retraces from weekly highs around 0.9780s, though it remains up by 0.30%. At the time of writing, the USD/CHF is trading at 0.9751.

Factors like a dismal market mood boost appetite for the greenback. Reflecting the mentioned are European and US equities, falling except for the Nasdaq 100, previouslyd by rising global bond yields. The US 10-year Treasury yield climbs three and a half basis points above 3.014%.

The US Dollar Index, which measures the buck’s performance vs. A basket of six currencies, remains flat during the day at 102.336.

USD/CHF Price Forecast: Technical outlook

The USD/CHF remains upward biased after the 500 pip pullback from YTD highs at 1.0007, which bounced short of the 61.8% Fibonacci retracement at 0.9532. However, in the last couple of trading days, USD/CHF traders, unable to break above the May 20 high at 0.9764, would keep the USD/CHF in a 30-pip narrow range, with the 38.2% Fibonacci retracement at 0.9735 on the bottom, and 0.9764 on top.

Upwards, the USD/CHF first resistance would be 0.9764, the top of the range. Break above would expose the major to further upward pressure and send it towards the 23..6% Fibonacci retracement at 0.9861. Once cleared, a test of the YTD high at 1.0007 is on the cards. Otherwise, the USD/CHF first support would be the psychological 0.9700 figure. A breach of the latter would expose the 50% Fibonacci retracement at 0.9633, followed by the 50-day moving average (DMA) at 0.9621.

Key Technical Levels


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