USD/CHF's reversal from 0.9460 is testing support at 0.9330
18.03.2022, 15:36

USD/CHF's reversal from 0.9460 is testing support at 0.9330

  • The dollar is attempting to set a bottom at 0.9330 on retreat from 0.9460.
  • The sourer market sentiment is offering some support to the USD.
  • USD/CHF is testing an important support level at 0.9330.

The US dollar is heading lower against the Swiss Franc for the third consecutive day, after peaking at 0.9460 earlier this week, although the pair seems to have found some support at 0.9330/45 area.

The USD attempts to bounce up as market sentiment deteriorates

The sourer market mood on Friday, as the peace talks between Russia and Ukraine fail to deliver any substantial progress, has undermined the market optimism observed in previous days which had weighed significantly on US dollar bets.

Beyond that, investors are adopting a cautious approach to risk, wary of the outcome of the US-China conference over Russia, after President Joe Biden warned Xi Jinping of serious consequences if China decides to offer military aid to Russia.

USD/CHF testing an important support at 0.9330

From a technical perspective, after breaking below the last two week’s upside trendline support, the pair is now testing support at 0.9330/40, where the 38.2% support of the March 4 – 16 rally meets the 200-hour SMA.

Below here, the next potential targets are likely to be the 50% Fibonacci retracement, at 0.9310, and March 11  low at 0.9290.

On the upside, immediate resistance lies at 0.9380/90 (intra-day high and the 100-hour SMA. Once above here, the pair might find resistance at the previous trendline support, now at 0.9430 before attempting another test to March highs at 0.9460.

USD/CHF hourly chart 

Technical levels to watch

 

 

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