USD/CHF Price Analysis: Pulls back from parity level and hovers around 0.9935 after profit-taking

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  • 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.

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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.

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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.

Technical levels


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

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