- USD/CHF is up on the week, up 1% so far.
- Broad US dollar weakness boosts Swiss franc outlook.
- USD/CHF Technical Outlook: Neutral to the upside due to DMAs placing below price.
The USD/CHF falls for the first time this week as the dollar plummets against most G8 currencies, amid a better market mood caused by Ukraine’s readiness to reach a diplomatic solution with Russia. At press time, USD/CHF is trading at 0-9260 during the American session.
Meanwhile, European stock indices will end their trading session higher. The US stock market rallied strongly, breaking four consecutive days of losses. Meanwhile, the US Dollar Index, a gauge of the dollar’s value against a basket of six rivals, reflects the appetite of market participants, down more than 1% and just below the 98 mark in 97.98, in a violent swing that reverses two full days. profit
USD/CHF overnight hovered around weekly highs of 0.9290-0.9300 as the Asian session traded mainly on risk-off market sentiment. Once the European session opened, the CHF strengthened against the US dollar, hitting a daily low at 0.9250 and stabilizing around the 0.9250-60 region.
USD/CHF Price Forecast: Technical Outlook
The USD/CHF pair remains range bound, with a new trading range in the 0.9250-0.9300 area, falling below the 0.9200-50 region. However, the location of the daily moving averages (DMAs) below the spot price, although almost horizontal, suggests that the pair is neutral to the upside, but would need a daily close above 0.9300 for it to break. USD/CHF bulls may hold out hope for further rally.
The first resistance of the USD/CHF would be 0.9300. A break of the latter would expose the Jan 31 daily high at 0.9343, followed by the Nov 24, 2021 daily high at 0.9373.
Additional technical levels
Source: Fx Street
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