USD/CHF Price Analysis: A 50-pip jump broke all the DMAs, cling to a high 0.9220s area
24.02.2022, 14:40

USD/CHF Price Analysis: A 50-pip jump broke all the DMAs, cling to a high 0.9220s area

  • The USD/CHF keeps fluctuating in the week, but the Russian invasion increased demand for the greenback, in the day is up 0.64%.
  • USD/CHF Technical Outlook: The pair in the short-term is upwards, but geopolitical headlines rule price action, caution is warranted.

On Thursday, the USD/CHF rallies from the 0.9170 area towards 0.9250 on safe-haven flows attributed to Russia’s invasion of Ukraine, which began during the start of the Asian session, impacting negatively the market mood. At press time, the USD/CHF is trading at 0.9225.

During the Asian session, we had the UN security council meeting, and as the meeting was taking place, Russian President Vladimir Putin released a speech announcing a special military operation in Ukraine, aiming to de-militarize the country.

How is Russian-Ukraine war impacting financial markets? Follow our live coverage updates!

Market’s reaction

The USD/CHF barely moved in the initial reaction to the headline. Nevertheless, as the European session got underway, the pair jumped 50+ pips, reaching a daily high at 0.9247.

USD/CHF Price Forecast: Technical outlook

The USD/CHF is neutral in the daily chart from a technical perspective. During the day, so far broke upwards, leaving behind all the daily moving averages (DMAs), but it is worth noting that happened in the last four trading days.

Current geopolitical developments suggest taking a short-term look due to the volatility implied in such events. The USD/CHF 1-hour chart depicts the pair broke ALL the simple moving averages (SMAs) and will lean to February 23 high and the 200-hour SMA confluence around the 0.9212-18 as the first support. As long as the pair remains above, upward moves towards the daily high at 0.9247 might be on the cards. Otherwise, bearish sentiment will overtake the current bullishness of the USD/CHF.

Upwards, the USD/CHF resistance levels lie in the daily high at 0.9247, followed by February 16 high at 0.9261, and February 15 daily high at 0.9274. On the flip side, the first support would be the abovementioned 0.9212-18 area, followed by the figure at 0.9200 and today’s daily low at 0.9172.

 

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