At the time of writing, the USD/CHF drops during the New York session, trading at 0.9213. Risk-aversion in the financial market, spurred by the Omicron outbreak and US domestic political issues, boosted the safe-haven status of the Swiss franc, weighing on the greenback.
In the meantime, the US Dollar Index, which tracks the buck’s value versus six rivals, drops 0.09%, sitting at 96.48, undermined by falling US bond yields, with the 10-year unmoved at 1.40% in the last couple of hours.
During the overnight session, the USD/CHF began the trading week around the daily highs of the day at 0.9250. Nevertheless, as the American session got underway, the price collapsed through the 200, the 100, and the 50-hour simple moving averages (SMAs) towards the S1 daily pivot at 0.9196.
As of the last couple of hours, the pair jumped as US Treasury yields recovered some ground, but it faces resistance at the 50-hour SMA at 0.9214.
The USD/CHF daily chart depicts that the pair have remained in consolidation for the last 16 trading days, in the 0.9160-0.9265 range, sometimes piercing through price extremes, like the December 15 high at 0.9293. At press time, the USD/CHF pair has a neutral bias.
To the upside, the first support would be 0.9290. A clear break of that level would expose the 78.6% Fibonacci retracement at 0.9327, followed by the November 24 high at 0.9373.
On the flip side, the confluence of the 50 and the 100-day moving averages (DMAs) around the 0.9205-15 range would be the first demand area. A sustained breach of the latter would expose the 0.9200 figure, immediately followed by the 200-DMA at 0.9176.
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