USD/CHF Price Analysis: Remains negative but bounced off weekly lows around 0.9545, approaches 0.9590s

• The USD/CHF is registering losses of 1.68% as the weekend looms.
• A risk-on market mood capped the USD/CHF fall as safe-haven appetite decreased.
• USD/CHF Price Forecast: If bulls are to regain control, a daily close above 0.9600 is needed.

The Swiss franc is set to finish for the second consecutive week with hefty gains, as shown by the USD/CHF losing 1.68%. On Friday, in the North American session, the USD/CHF ticked down some 0.07%, trading at 0.9583 at the time of writing.

Sentiment remains upbeat, once the Fed’s favorite measure of inflation, although it came near 40-year highs, easied from the 5% threshold to 4.9% YoY. US equities are climbing during the day. Even the S&P 500 has almost pared its monthly gains in what seems to be a relief rally, as investors backpedaled from an “aggressive” Fed tightening cycle.

In the meantime, the US Dollar Index, a gauge of the greenback’s value, post-minimal gains of 0.05%, is sitting at 101.812. Contrarily US Treasury yields remain flat, led by the 10-year benchmark note, stationary at 2.749%.

USD/CHF Price Forecast: Technical outlook

Friday’s price action pushed the USD/CHF towards fresh five-week lows, near 0.9545 but bounced from under the 50-day moving average (DMA) around 0.9567, as USD/CHF bulls get ready to launch an assault towards 0.9600, so they can keep the uptrend intact. However, to their detriment, oscillators remain in bearish territory through directionless, opening the door for a consolidation.

Upwards, the USD/CHF first resistance would be 0.9600. Break above would open the door for additional supply zones. Firstly the May 26 daily high at 0.9632, followed by the June 5, 2020, high at0.9652. On the other hand, the USD/CHF first support would be the 50-DMA at 0.9567. Latter’s breach would expose the Bollinger’s band bottom band, at 0.9511, followed by a re-test of the 0.9500 figure.

Key Technical Levels