Down from daily highs, stalls at 200 DMA at 0.9179

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  • Market sentiment is bearish, fueled by developments in the Ukraine-Russia war, increased appetite for safe haven pairs, with the dollar rising, except for the CHF.
  • New sanctions imposed on Russia prompted a rate hike by the Russian Central Bank of 1,100 basis points amid the ruble’s free fall.
  • USD/CHF Technical Outlook: Neutral bias but upside/downside risks remain as USD/CHF traders test the 200-day DMA.

In the last week, the USD/CHF posted gains of 0.46% amid a busy day in financial markets, with the Ukraine-Russia war grabbing most of the headlines, causing fluctuations in market sentiment. At the time of writing, the USD/CHF is trading at 0.9183.

Strict sanctions imposed over the weekend by the US, Europe and other countries dampened the market mood, with stocks falling, haven assets such as the dollar and Swiss franc recovering, while that precious metals and oil rose. It is worth noting that the Central Bank of Russia raised rates from 9.50% to 20% to limit the fall of the ruble.

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In the overnight session for North American traders, USD/CHF hit a daily high at 0.9277, appearing to break the top of the trading range. However, as soon as European traders hit their desks, the pair plunged almost 90 pips to 0.9180 as traders scrambled for safety.

USD/CHF Price Forecast: Technical Outlook

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USD/CHF tests the 200-day moving average (DMA) at 0.9179, and on its way south, USD/CHF broke the 50 and 100 DMAs at 0.9197 and 0.9205 each. If USD/CHF records a daily close of the 200 DMA, that could expose Feb 21 low at 0.9150, followed by Jan 21 pivot low at 0.9105 and Nov 2, 2021 low at 0.9085.

To the upside, the first resistance would be the 50 DMA at 0.9197. A breach of the latter would expose the 100 DMA at 0.9205, followed by the Feb 24 daily high at 0.9288.

Additional technical levels

Source: Fx Street

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