- USD/CHF will end the week with losses of 0.45%.
- Failure to recapture 1.0027 would confirm the breakout of the USD/CHF rising wedge, targeting the 200-day EMA at 0.9567.
USD/CHF pulled back from daily highs hit in the North American session around 1.0147 but trimmed gains, falling below 1.0000 towards its daily low at 0.9961, as the Japanese government and Bank of Japan (BoJ) acknowledged have intervened in the currency markets, which pushed the yen against USD/CHF. At the time of writing, USD/CHF is trading at 1.0003, holding on to parity.
USD/CHF Price Forecast
The USD/CHF daily chart shows that the pair broke above the upper trend line of a bearish rising wedge, but pulled back within it, following Bank of Japan intervention. As the BOJ hit the dollar, USD/CHF fell below the lower trend line of the rising wedge, opening the door for further losses. Although USD/CHF trimmed some of its losses, the major pair remains below the trend line mentioned above. Therefore, further bearish action is warranted.
Therefore, the first support of the USD/CHF would be the parity. A break below will immediately expose the daily low of Oct 21 at 0.9961, followed by the 20-day EMA at 0.9928, ahead of 0.9900.
On the other hand, if USD/CHF retraces 1.0027, it would exacerbate a retest of 1.0100 as buyers target the yearly high at 1.0147.
Key USD/CHF Technical Levels
Source: Fx Street
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