USD/CHF Price Analysis: Advances toward the 200-DMA at around 0.9450
02.03.2023, 17:26

USD/CHF Price Analysis: Advances toward the 200-DMA at around 0.9450

  • USD/CHF advances due to higher US Treasury bond yields and a strong US Dollar.
  • Bulls are eyeing a test of the 200-day EMA around 0.9452.
  • USD/CHF Price Analysis: Neutral upwards and will be cemented by a daily close above 0.9400.

The USD/CHF staged ar recovery and reached a new year-to-date high at 0.9439 in the mid-North American session. A solid US jobs report triggered a US bond sell-off; consequently, UST bond yields are skyrocketing and are boosting the US Dollar (USD). The USD/CHF is trading at 0.9428, eyeing a break of a range above the February 27 daily high at 0.9429.

USD/CHF Price action

Technically speaking, the USD/CHF is neutral biased, though the break of the psychological 0.9400 could open the door for further gains. Above the current exchange rate sits the 200-day Exponential Moving Average (EMA) at 0.9452, seen as a reference to the bullish/bearishness of an asset. If the USD/CHF breaks the latter, the bias will shift to neutral-upwards. Unless the USD/CHF cracks the next resistance area at 0.9547, the November 30 high, the neutral-upwards tendency would be weak. Once the USD/CHAF pair snaps 0.9547, the major could rally toward the November 21 high at 0.9598.

Readings in oscillators support the bias change, with the Relative Strength Index (RSI) aiming higher and the Rate of Change (RoC). Therefore, the USD/CHF bias is neutral-upward.

On the other hand, failure to hold to gains above 0.9400 would exacerbate the USD/CHF fall to the 100-day EMA at 0.9386 before testing the January 24 high turned support at 0.9360.

USD/CHF Daily chart

USD/CHF Technical levels

 

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