USD/CHF Price Analysis: Retraces Wednesday’s gains, back below 0.9600, on a weak USD

• The USD/CHF remains almost flat in the week, up by a minimal 0.06%.
• Sentiment remains positive as Asian equities prepare for a higher open, as shown by the futures market.
• USD/CHF Price Forecast: To extend its losses towards the 100-DMA at 0.9419.

On Thursday, the USD/CHF slashed Wednesday’s gains and some more, down 0.50%, and breaching on its way south, the 50-day moving average (DMA) at 0.9594. At 0.9577, the USD/CHF reflects the US Dollar’s weakness amidst a positive market mood throughout the day.

During the New York session, stocks ended with gains. Despite the market’s rhetoric of investors’ fears about a US recession, China’s Covid-19 lockdowns, and Russia’s invasion of Ukraine, Asian equity futures are poised for a higher open. Also, a weaker than expected US Dollar, following Wednesday’s price action, when the greenback recaptured 102.000, gave back its gains, retracing 0.77%, sitting at 101.754.

That said, a headwind for the USD/CHF boosted the low-yielder Swiss franc. Furthermore, a stationary US 10-year Treasury yield at 2.911% fueled selling pressure on the USD/CHF, which fell below the 0.9600 mark.

USD/CHF Price Forecast: Technical outlook

From the daily chart perspective, the USD/CHF is consolidating with the short-term daily moving averages (DMAs), the 20 and 50 above the exchange rate, while the 100 and the 200-DMA remain below. Nevertheless, due to Wednesday’s rally towards 0.9652 and the Relative Strength Index (RSI) pushing lower, well within negative readings, a move towards the 100-DMA might be on the cards.

Therefore, the USD/CHF first support would be the April 20 high-turned-support at 0.9526. A breach of the latter would expose April 1, 2021, at 0.9472 high, followed by the 100-DMA at 0.9419.

Key Technical Levels