- The USD/CHF daily chart illustrates a double top formation, but strong buying pressure below 0.9540 has limited any downside move.
- The risk aversion drive bolstered appetite for the Swiss franc and weighed on the US dollar.
- USD/CHF 1 hour chart is sloping to the upside, but unless buyers reclaim 0.9600, the pair is vulnerable to selling pressure.
The USD/CHF it retraces from 0.9600 after a previous dollar rally that failed to break above the previous figure, and has so far retraced to just above the 100-day moving average (DMA), which sits near 0.9514. At the time of writing, the USD/CHF is trading at 0.9540 in the American session.
Sentiment remains gloomy due to renewed fears that high inflation and a global economic slowdown constitute a stagflation scenario. US equities are under pressure for their worst percentage decline since the 1970s, while the dollar turned negative and remains below the 105,000 figure, shedding 0.38%.
That said, USD/CHF ranged around 0.9546-0.9594 on the back of mixed US economic data, followed by a drop towards Thursday’s daily center pivot point at 0.9540, where the pair settled. .
USD/CHF daily chart
The double top on the USD/CHF daily chart is still in play, although USD/CHF sellers are struggling to make a decisive break below the daily low of May 27 at 0.9544. USD/CHF traders should note that the 100 DMA is trading around that price level, albeit about 15 pips above 0.9500. A decisive break would take the USD/CHF pair to test the 100 DMA, followed by 0.9500, and then the March 16 high at 0.9460.
USD/CHF 1 hour chart
On the 1 hour chart of USD/CHF, the pair is consolidating but slightly leaning higher. The weekly low registered on Wednesday, around 0.9495, propelled the price higher. However, the confluence of the 50 and 100 Simple Moving Averages (SMAs) around 0.9553-61 capped the pair’s upside after the major fell following mixed US data. A break below 0.9529 would send USD/CHF towards 0.9495; otherwise, the major would be vulnerable to buying pressure. In that scenario, if USD/CHF buyers retake the 200 SMA zone at 0.9599, it would clear the way for further gains.
Key USD/CHF Technical Levels
|Last Price Today||0.9547|
|Today’s Daily Change||-0.0003|
|Today’s Daily Change %||-0.03|
|Today’s Daily Opening||0.955|
|20 Daily SMA||0.9712|
|50 Daily SMA||0.9736|
|100 Daily SMA||0.9516|
|200 Daily SMA||0.9366|
|Previous Daily High||0.9578|
|Previous Daily Minimum||0.9495|
|Previous Maximum Weekly||0.9713|
|Previous Weekly Minimum||0.9522|
|Monthly Prior Maximum||1.0064|
|Previous Monthly Minimum||0.9545|
|Daily Fibonacci 38.2%||0.9527|
|Daily Fibonacci 61.8%||0.9547|
|Daily Pivot Point S1||0.9504|
|Daily Pivot Point S2||0.9458|
|Daily Pivot Point S3||0.9421|
|Daily Pivot Point R1||0.9587|
|Daily Pivot Point R2||0.9624|
|Daily Pivot Point R3||0.967|
Source: Fx Street