USD/CHF Price Analysis: Climbs near 0.9700 snaping two days of losses
17.06.2022, 21:01

USD/CHF Price Analysis: Climbs near 0.9700 snaping two days of losses

  • The Swiss franc is on the driver's seat, as shown by the USD/CHF dropping 1.82%.
  • Sentiment in the FX space fluctuated, with safe-haven peers gaining, except for the JPY.
  • USD/CHF Price Forecast: Subject for a mean reversion move towards 0.9850.

The USD/CHF recovered some ground after falling to fresh weekly lows around 0.9620, bounced off, and reclaimed 0.9700 on Friday. At the time of writing, the USD/CHF is trading at 0.9695, up by 0.38%.

US equities reflected a positive market mood, but in the FX space, the sentiment was mixed. The greenback staged a recovery, as the US Dollar Index reflected, gaining 0.80%, sitting at 104.631. US Treasury yields fell, though they remained above the 3% threshold.

USD/CHF Price Forecast: Technical outlook

The USD/CHF shifted neutral biased after tumbling 400 pips from the parity, just above the 50-day moving average (DMA) at 0.9700. Reinforcing the aforementioned is the position of the Relative Strength Index (RSI), dropping from overbought conditions, under the 50-midline at 47.40. Nevertheless, due to the size of the fall and the USD/CHF tumbling towards the 78.6% Fibonacci level, that would open the door for a mean reversion move near 50% or the 38.2% Fibonacci retracement.

That said, the USD/CHF first resistance would be the 50-DMA at 0.9700. A breach of the latter would expose the 61.8% Fibonacci retracement at 0.9737. Once broken, that would send the pair towards the 50% Fibo level at 0.9797, followed by a re-test of the 38.2% Fibonacci retracement at 0.9857.

Key Technical Levels

 

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