A 50 pip jump broke all DMAs, holding on to a high at 0.9225

  • USD/CHF continues to fluctuate on the week, but the Russian invasion increased demand for the dollar, rising 0.64% on the day.
  • USD/CHF Technical Outlook: Short-term pair is on the upside, but geopolitical headlines rule price action, caution warranted.

On Thursday, the USD/CHF rises from the 0.9170 area towards 0.9250 due to safe haven flows attributed to Russia’s invasion of Ukraine, which started during the early Asian session, which negatively impacted market sentiment. At press time, USD/CHF is trading at 0.9225.

During the Asian session, we had the UN Security Council meeting and, while the meeting was taking place, Russian President Vladimir Putin made a speech announcing a special military operation in Ukraine, with the aim of demilitarizing the country.

market reaction

USD/CHF was barely budgeable in the initial reaction to the headline. However, as the European session started, the pair jumped over 50 pips, reaching a daily high of 0.9247.

USD/CHF Price Forecast: Technical Outlook

USD/CHF is neutral on the daily chart from a technical perspective. During the day, it has broken to the upside thus far, leaving behind all the daily moving averages (DMAs), but it is worth noting that it has happened in the last four trading days.

Current geopolitical developments suggest looking short-term due to the volatility such events imply. The 1 hour chart of USD/CHF shows that the pair has broken all SMAs and will slope towards the Feb 23 high and the 200 hour SMA confluence around 0.9212-18 as first support. As long as the pair remains above, moves higher towards the daily high at 0.9247 could be in play. Otherwise, the bearish sentiment will overtake the current USD/CHF uptrend.

To the upside, USD/CHF resistance levels are found at the daily high at 0.9247, followed by the Feb 16 high at 0.9261 and the Feb 15 daily high at 0.9274. On the other hand, the first support would be the aforementioned 0.9212-18 area, followed by the 0.9200 figure and today’s daily low at 0.9172.

Additional technical levels

Source: Fx Street

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