- As USD/CHF’s drop below parity shows, the Swiss franc regains some ground against the dollar, gaining almost 0.90%.
- The positive market mood keeps the US dollar under pressure.
- USD/CHF Price Forecast: Falls on Profit-Taking, But Upside Bias Remains.
The USD/CHF slumped after the release of better-than-expected US retail sales. At 0.9929, USD/CHF is targeting to retest the daily low of Mar 23, 2020 around 0.9901.
Risk prevails as the driver of market sentiment on Tuesday. Global stocks continue to trade higher, while the USD remains weak, despite better than expected US economic data. US Treasury yields continue to rise, with the 10-year Treasury yield rising seven and a half points to 2,960%, far from the 3% threshold.
The dollar index is taking a beating, influenced by a strong euro, shedding 0.70%, currently at 103.409.
During the overnight session, USD/CHF opened above the parity level, although it dipped below the 50, 100 and 200 hourly Simple Moving Averages (SMAs) as some ECB speakers, led by Klaus Knot, they said the ECB could hike 50 basis points based on available data.
USD/CHF Price Forecast: Technical Outlook
USD/CHF continues to have a bullish bias, despite retreating almost 1% on Tuesday. The daily moving averages (DMA) are well below the exchange rate. Furthermore, the Relative Strength Index (RSI), around 67.91, broke out of the overbought territory, opening the door to further upward pressures for the pair.
That said, the first resistance level for USD/CHF would be the May 10 daily high at 0.9975. A break of the latter would expose the parity at 1.000, followed by the high for the year around 1.0064.
|Last Price Today||0.9945|
|Today’s Daily Change||-0.0073|
|Today’s Daily Change %||-0.73|
|Today’s Daily Opening||1.0018|
|20 Daily SMA||0.9771|
|50 Daily SMA||0.9506|
|100 Daily SMA||0.9354|
|200 Daily SMA||0.9284|
|Previous Daily High||1.0064|
|Previous Daily Minimum||1.0008|
|Previous Maximum Weekly||1.0049|
|Previous Weekly Minimum||0.9872|
|Monthly Prior Maximum||0.9759|
|Previous Monthly Minimum||0.9221|
|Daily Fibonacci 38.2%||1.0029|
|Daily Fibonacci 61.8%||1.0043|
|Daily Pivot Point S1||0.9996|
|Daily Pivot Point S2||0.9973|
|Daily Pivot Point S3||0.9939|
|Daily Pivot Point R1||1.0052|
|Daily Pivot Point R2||1.0087|
|Daily Pivot Point R3||1.0109|
Source: Fx Street