- The Swiss franc is benefiting amid a risk-off market environment, as reflected by the 0.25% drop in USD/CHF.
- The drop in US Treasury yields, led by the 10-year yield, underpins the USD/CHF pair.
- USD/CHF Price Forecast: An inverted head and shoulders is coming on the 4hr chart, though to confirm its validity, it would need to recapture 0.9373.
During the night, the USD/CHF reached a daily high at 0.9357, but a risk-off market mood, which benefited the underperforming Swiss franc, prevented USD bulls from regaining the neckline of an inverted head and shoulders pattern forming in the 4 hour chart. At 0.9304, USD/CHF is down and aims to test the 0.9300 level.
Risk aversion is back, as reflected in global stocks, which could not ignore the tensions between Russia and Ukraine. Meanwhile, the US Dollar Index, a gauge of the dollar’s value against a basket of its rivals, is up 0.22% to 98.637, but failing to support USD/CHF. US Treasury yields are falling from weekly highs, led by 10-year yields down six basis points to 2,306%.
USD/CHF Price Forecast: Technical Outlook
From a daily chart perspective, USD/CHF is biased to the upside. However, USD bulls who failed to keep the exchange rate above 0.9343 exposed the pair to the 0.9297-0.9343 range.
4 hour chart
USD/CHF is also biased to the upside from an intraday perspective, as shown by the simple moving averages (SMAs) in a bullish order. However, the 50 SMA sits above the price at 0.9360, almost converging with the neckline of the inverted head and shoulders, acting as the first resistance level.
It is worth noting that an inverted head and shoulders pattern could be forming, but USD/CHF would need to break higher to confirm the right shoulder formation. That said, the first resistance for USD/CHF would be an uptrend line drawn from the March 7 lows around 0.9320. A break of the latter could push the price towards the 50 SMA at 0.9360. A decisive break would expose the cycle top around 0.9360-75, followed by 0.9400.
Additional technical levels
USD/CHF
| Panorama | |
|---|---|
| Last Price Today | 0.9308 |
| Today’s Daily Change | -0.0021 |
| Today’s Daily Change % | -0.23 |
| Today’s Daily Opening | 0.9329 |
| Trends | |
|---|---|
| 20 Daily SMA | 0.9281 |
| 50 Daily SMA | 0.9237 |
| 100 Daily SMA | 0.9226 |
| 200 Daily SMA | 0.9209 |
| levels | |
|---|---|
| Previous Daily High | 0.9376 |
| Previous Daily Minimum | 0.9314 |
| Previous Maximum Weekly | 0.946 |
| Previous Weekly Minimum | 0.9314 |
| Monthly Prior Maximum | 0.9297 |
| Previous Monthly Minimum | 0.915 |
| Daily Fibonacci 38.2% | 0.9338 |
| Daily Fibonacci 61.8% | 0.9352 |
| Daily Pivot Point S1 | 0.9303 |
| Daily Pivot Point S2 | 0.9278 |
| Daily Pivot Point S3 | 0.9241 |
| Daily Pivot Point R1 | 0.9365 |
| Daily Pivot Point R2 | 0.9402 |
| Daily Pivot Point R3 | 0.9427 |
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
