- The Swiss franc weakened against the greenback, despite safe-haven flows, down almost 1%.
- Sentiment and a stronger US Dollar lift the pair as buyers step in, eyeing a break of the 50-DMA.
- The USD/CHF double top is still in play, but upside risks remain.
The USD/CHF advances sharply for the third straight day, snapping two days of consecutive losses that dragged the major to print a fresh two-month low of around 0.9495, gaining almost 1% on Tuesday. At the time of writing, the USD/CHF is trading at 0.9687.
Investors’ fears that the global economy might enter a recession sent US equities sliding, except for the Nasdaq Composite. The US Treasury yields followed suit, sliding, led by the US 10-year Treasury yield descending close to 4%, sitting at 2.804%. Meanwhile, the US Dollar Index is rallying close to 1.50%, at 106.646, a tailwind for the USD/CHF.
On Tuesday, the USD/CHF opened near Monday highs. While, it dipped as the London session opened, towards the daily pivot point around 0.9590, to never look back, overcoming on its way up some resistance levels, like the R1 pivot point at 0.9630, the July 1 high at 0.9641, before settling around just shy of the 0.9700 figure.
USD/CHF Daily chart
The USD/CHF daily chart illustrates the pair as upward biased; However, the double top remains in play. If the greenback extends its gains throughout the week and if USD/CHF buyers step in, a break above the 50-day moving average (DMA) at 0.9733 is on the cards and could accelerate a rally towards the 0.9900 mark. However, on its way north, USD/CHF buyers will need to reclaim April 2020 high at around 0.9802.
USD/CHF Key Technical Levels