- USD / CHF moves higher on Thursday, as the USD’s safe haven status outperforms the Swiss franc.
- Market sentiment has been affected by the COVID-19 restrictions amid the fourth wave in Europe.
- The transmissibility of the Omicron variant of COVID-19 threatens to overwhelm hospitals.
After hitting the target of a double top chart pattern on Wednesday, USD / CHF has reversed course and is moving sharply higher, trading at 0.9245 at the time of writing. Investor sentiment is bullish as participants evaluate COVID-19 restrictions in countries affected by the fourth wave, threatening a slowdown in economic recovery. What’s more, Omicron has higher transmissibility, raising concerns that hospitals could be overwhelmed, despite less severe symptoms caused by the strain.
Having said that, the USD has regained its refugee status Sure, with the DXY US Dollar Index rising 0.38% to 96.26, a tailwind for the USD / CHF pair.
In the Asian session, USD / CHF dipped to 0.9190 and then immediately bounced, recovering the level of 0.9200. Later, the pair rose around the daily pivot at 0.9215, followed by a rally towards the December 8 high of 0.9252.
USD / CHF technical outlook
In the 4-hour chart, the USD/CHF It has been hovering around the 100 and 200 simple moving averages in a range-linked environment. The lack of catalyst would keep the pair trading at familiar levels, around 0.9190-0.9260, awaiting the release on Friday of the US CPI consumer price index for November.
At the time of writing, the spot price is close to the 100 SMA, which is located at 0.9258, facing stiff resistance. If USD / CHF breaks higher, it will find resistance levels around 0.9270, an area respected by investors since November 29, followed by the round level of 0.9300.
On the other hand, the first support would be the resistance R1 of the Pivot in 0.9234, followed by a strong confluence of the 50 and 200 SMAs and the daily pivot at 0.9214.
USD / CHF technical levels
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