Market news

17 December 2021

USD/CHF Price Analysis: Pares Thursday’s losses, reclaims the 0.9200 figure

  • The USD/CHF trims some of Thursday’s losses, up some 0.47%.
  • A downbeat market sentiment boosts the US Dollar prospects, the CHF weakened.
  • USD/CHF Technical Outlook: Upward bias, though a break above 0.9300 would open the door for 0.9400.

The greenback recovers some of Thursday’s losses against the Swiss franc, climbs above the 100, and the 50-day moving averages (DMAs) trading at 0.9227 during the New York session at the time of writing. Financial markets risk-aversion favors the greenback safe-haven status, to the detriment of the Swiss franc.

In the bond market, US T-bond yields extend their losses, with the 10-year Treasury yield falling four basis points, sitting at 1.382%. However, the greenback has offset the downfall, with the US Dollar Index, which tracks the buck’s performance against a basket of six rivals, advances 0.35%, up to 96.39, near December 16 daily tops.

USD/CHF Price Forecast: Technical outlook

From the technical perspective, as shown by the daily moving averages (DMAs) located below the spot price, the USD/CHF pair has an upward bias. In fact, in the overnight session, the USD/CHF dipped as low as the 200-DMA at 0.9174, then rebounded near the December 16 tops around 0.9232.

To the upside, the first resistance would be the December 16 high at 0.9233. The breach of the latter would allow USD bulls to resume the uptrend towards the 50% Fibonacci retracement at 0.9265. A clear break above that level would send the pair rallying towards the confluence of a downslope trendline and the 61.8% Fibonacci retracement around the 0.9280-0.9300 area.

On the other hand, the USD/CHF first support would be the 50-DMA at 0.9213, followed by the 100-DMA at 0.9204. A break beneath the latter would open the door for a retest of the 200-DMA at 0.9174.

 

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Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

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