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USD/CHF Price Analysis: Bounces off weekly-lows reclaims 0.9100

  • The USD/CHF fall ended after three consecutive days amid a risk-off market mood.
  • The rise of the 10-year US Treasury yield underpins the greenback.
  • USD/CHF is neutral biased, but a bullish-engulfing candle pattern may open the door for an upside move; otherwise, it could challenge August 2021 monthly lows.

The USD/CHF snaps three straight days of losses, edges higher during the New York session, trading at 0.9139 at press time. A risk-off market mood, increased demand for safe-haven assets, usually benefits the CHF and the JPY, but not on Friday, with the USD recovering from earlier week losses.

The USD Dollar Index, a gauge of the greenback’s performance against six other currencies, advances som 0.29%, up to 95.96, underpinned by the 10-year benchmark note, which is rising 3.4 basis points, sitting at 1.754%.

USD/CHF Price Forecast: Technical outlook

The USD/CHF daily chart depicts the consolidation of the pair inside an ascending channel; even though it was “pierced” on the bottom trendline, USD bears have not achieved a daily close under 0.9080.

If USD/CHF Friday’s daily close engulf Thursday’s candlestick price action, an upward move may be on the cards. In that outcome, the first resistance would be the 200-day moving average (DMA) previously broke at 0.9167. An aforementioned break would expose the confluence of th3 50 and the 100-DMA in the 0.9210-12 range, which once gave way to USD bulls, would send the pair rallying towards December 15, 2021 daily high at 0.9294.

Contrarily, failure of the abovementioned scenario would keep the USD/CHF neutral-downward biased. The USD/CHF first line of defense would be 0.9100. A breach of the latter would exert further downside pressure on the pair, exposing crucial support levels. The next one would be November 2, 2021, daily low at 0..9084, followed by August 4, 2021, cycle low at 0.9018.

 

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