- USD/CHF rises close to 1% during the American session.
- A risk aversion market keeps the US dollar as the most sought after safe haven asset, DXY above 99.00.
- USD/CHF Technical Outlook: Approaching an eleven-month downtrend line around 0.9275-0.9300.
The USD/CHF reversed last week’s 1% losses so far in the American session on Monday, bouncing from 0.9165, lows reaching a daily high of 0.9272, to then settle at time of writing, trades at 0.9256, with a gain of 1%. Market participants’ focus remains on Eastern Europe, as the third round of talks was underway. At the end of the week, the Ukrainian/Russian Foreign Ministers will meet in Turkey on Thursday.
Meanwhile, hostilities between Russia and Ukraine continue; The US Dollar Index, a gauge of the dollar’s value against its peers, hit a yearly high at 99.418, but at press time it stands at 99.152 for a gain of 0.66%.
During the overnight session for American traders, USD/CHF rallied once the Asian session started, followed by a consolidation around 0.9200, then higher towards 0.9272, pulling back to current levels.
USD/CHF Price Forecast: Technical Outlook
USD/CHF maintains a neutral bias but is approaching an eleven-month downtrend line around 0.9275-0.9300. However, USD/CHF has unsuccessfully tested the 0.9265-95 area on seven previous occasions, making it a troublesome resistance level to overcome.
That said, the first resistance for USD/CHF would be the 0.9270-90 region. A breach of the latter would expose the aforementioned trend line. Once that is removed, the next resistance would be the Jan 31 daily high at 0.9343, followed by the Nov 24, 2021 high at 0.9373.
Additional technical levels
Source: Fx Street
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