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USD / CHF extends rally to 0.9250, the new high in five months

  • USD / CHF continues to advance, reaching highs since late September.
  • In addition to the strength of the dollar, the recent boost comes from a fall in the Swiss franc.

USD / CHF gained momentum again after breaking above 0.9200 / 05 and began an upward process that is still ongoing. The price is at 0.9250, the new high in five months, accumulating a rise above 150 pips since the week began.

The momentum comes this time, not just from the strength of the dollar, but from a widespread weakness in the Swiss franc. Among those of the G10 it is the one that falls the most on Thursday. EUR / CHF is at 1.1130, a year and a half high.

Technical overview

The break of the USD / CHF above 0.9200, where the important 200-day moving average is, detonated more rises. There is also the Fibonacci retracement of 38.2% from the 0.9902-0.8758 dip and should now act as a key point for short-term traders. Meanwhile, the RSI on the day chart already shows intermittent overbought conditions and warrants some caution.

USD / CHF now appears poised to appreciate further and is aiming to test the swing highs of September 2020, just ahead of the 0.9300 zone. If it continues above, 0.9340 appears, the 50% retracement.

On the other hand, any significant retracement now appears to find decent support near 0.9200 (Fibonacci level 38.2%). Below the next support can be found near the 0.9140-30 region (200 day moving average), which now appears to act as a solid base for the pair.

USD / CHF day chart

USDCHF

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