- USD/CHF aims to end the week with losses, shedding 1.03%.
- Global stock indices post losses in a busy week hit by economic data and geopolitical news.
- USD/CHF Technical Outlook: Neutral bias, confirmed by DMAs with near-horizontal slope limited to 15-pip range.
The USD/CHF is up for the third day of the week, but is set to end the week lower after Monday’s 1% loss, which pushed USD/CHF below its daily moving averages (DMAs). All this amid a risk-off market mood, portrayed by global stocks posting losses, blamed on fighting between Ukraine and Russia. At time of writing, USD/CHF is trading at 0.9188
Meanwhile, the US Dollar Index, which hit a new year-to-date high of around 98,992, headed up 0.85% to 98.62, while US Treasury yields fell by through a safe haven offer.
US labor market beat expectations, green light for Fed rate hike
On Friday, the US Department of Labor reported that the US economy added 678,000 new jobs in February, more than the forecast 400,000. Additionally, the Unemployment Rate ticked lower, while average hourly earnings fell slightly.
USD/CHF Price Forecast: Technical Outlook
USD/CHF has a neutral bias, and one could argue that it is neutral to the downside because the daily moving averages (DMAs) are above the spot price. However, the near flat slope and limited to a 14 pip range keeps traders undecided on which way to go.
DMAs aside, to the upside, the first resistance for USD/CHF would be at 0.9200. Once that level is cleared, the next supply zone would be the 0.9260-75 and 0.9300 area. On the other hand, the daily low of 0.9150 on Feb 21 would be the first support, followed by the daily low of Dec 31, 2021 at 0.9102.
Additional technical levels
Source: Fx Street
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