- USD/CHF extends its weekly gains to 1.98% after the monetary policy decisions of the Fed and the SNB.
- Major pairs break above the 0.9600-0.9700 range, posting a new weekly high at 0.9851.
- The path of least resistance for USD/CHF is to the upside; once it breaks above 0.9851, a retest of 0.9900 is anticipated.
The USD/CHF advanced during the North American session on Friday, gaining 0.60%, thanks to a boost from risk aversion spurred by fears of a global economic slowdown and by the aggressiveness of the Fed, as the US central bank struggles to moderating inflation from 40-year highs. At the time of writing, the USD/CHF is trading at 0.9836.
USD/CHF Price Analysis: Technical Outlook
The central bank frenzy was witnessed by the Fed and Swiss National Bank (SNB) rate hikes. Although the SNB ended the period of negative rates, it was not enough, according to market participants, who bought the USD/CHF, lifting the pair towards new all-time highs around 0.9851. However, USD/CHF buyers have been unable to break past last week’s high of 0.9869, which could open the door for further gains.
In the short term, the USD/CHF 4-hour chart turned from neutral to neutral-upward bias once the pair rallied above 0.9800 after trading sideways at the 0 zone. .9600-0.9700 throughout the week. Although the Relative Strength Index (RSI) entered overbought conditions, the USD/CHF’s bullish bias remains intact.
Therefore, the first resistance for USD/CHF is the weekly high at 0.9851. Breaking above will expose the R1 daily pivot at 0.9870, followed by the psychological signal at 0.9900.
On the other hand, the first support of the USD/CHF will be the daily pivot point at 0.9766. If the latter is broken, the pair declines towards the 20 EMA at 0.9719, ahead of the 0.9700 figure.
Key USD/CHF Technical Levels
|last price today||0.9824|
|Today I change daily||0.0054|
|Today’s daily variation in %||0.55|
|Daily opening today||0.977|
|Previous daily high||0.9851|
|Previous Daily Low||0.9622|
|Previous Weekly High||0.9661|
|Previous Weekly Low||0.948|
|Previous Monthly High||0.9808|
|Previous Monthly Low||0.9371|
|Daily Fibonacci of 38.2%||0.9763|
|Daily Fibonacci of 61.8%||0.9709|
|Daily Pivot Point S1||0.9644|
|Daily Pivot Point S2||0.9519|
|Daily Pivot Point S3||0.9416|
|Daily Pivot Point R1||0.9873|
|Daily Pivot Point R2||0.9976|
|Daily Pivot Point R3||1.0102|
Source: Fx Street