Price Analysis for USD/CHF: Still negative, but bounced off weekly lows of 0.9545 It is now close to 0.9590s Details
Posted Sunday, May 29, 2022 3:00 (AM) by- Kevin Smith
Price Analysis for USD/CHF: Still negative, but bounced off weekly lows of 0.9545 It is now close to 0.9590s

Price Analysis for USD/CHF: Still negative, but bounced off weekly lows of 0.9545 It is now close to 0.9590s

  • The USD/CHF has registered losses of 1.68 percent in the days leading up to the weekend.  
  • A mood of market risk has capped the fall in USD/CHF as the appetite for safe-havens dwindled.
  • USD/CHF Price Forecast If bulls want to take control, a daily closing at or above 0.9600 is necessary.

The Swiss currency is expected to end for the second week in a row with substantial gains, as evidenced by the USD/CHF slipping 1.68 percent. On Friday at the North American session, the USD/CHF dropped by 0.07 percent, and was it was trading around 0.9583 at the moment of writing.

The mood remains positive, and was being once the Fed's preferred measure of inflation. However, it reached 40-year-highs, it was able to move from the threshold of 5% to 4.9 percent YoY. US stocks are increasing in the course of the day. The S&P 500 has almost pared its gains for the month in what appears to be a rally of relief in the wake of investors reversing their stance away from an "aggressive" Fed tightening cycle.

In the meantime in the meantime, US Dollar Index, a indicator of the value of the greenback after a minimum gain of 0.05 percent, is at 101.812. However, US Treasury yields remain flat with the benchmark 10-year note that is fixed at 2.749 percent.

The USD/CHF price forecast: technical Outlook

Friday's price action drove the USD/CHF toward fresh lows over the last five weeks close to 0.9545 however, it bounced back from below the 50-day average (DMA) at 0.9567 and USD/CHF bulls prepare to take on 0.9600 and maintain the upward trend. But, to their disadvantage oscillators are in bearish territory, despite no direction which could lead to an eventual consolidation.

In the direction of upwards to the upside, up to the USD/CHF first resistance is 0.9600. A break above could open the possibility of additional supply zones. The first is the daily high of 0.9632 which was followed by May 5,2020 peak at0.9652. However it is believed that the USD/CHF first level of support is the 50-DMA, which is 0.9567. The breach of the lower line would expose the bottom band of Bollinger's which is at 0.9511 and then another test of the 0.9500 number.


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