USD/CHF Price Analysis: Remains confined to the 0.9160-0.9250 range

• The Swiss franc appreciates some 0.40% against the US dollar amid broad greenback weakness.
• An upbeat market mood failed to boost the buck vs. the low-yield currencies like the EUR, CHF, and JPY.
• Falling US T-bond yields weighed on the US dollar.
• USD/CHF Technical Outlook: Neutral with no clear bias, though the breakout of the trading range could offer some opportunities in the re-test of those levels.

The USD/CHF edges slightly lower during the New York session, trading at 0.9201 at the time of writing. A risk-on market mood has kept the greenback on the backfoot, undermined by falling US bond yields, with the 10-year Treasury yield down two and a half basis points, sitting at 1.462%.

The cause of investors’ confidence is that the Omicron variant slightly dented the market mood before Wall Street opened. Nevertheless, in the last couple of hours, equities rallied, while in the FX market, risk-sensitive currencies point upwards, to the detriment of the greenback. Moreover, positive news from South Africa, reporting that the current wave of contagious are 80% less likely to be hospitalized if people catch the Omicron strain, according to a study, improved risk appetite.

In the meantime, the US Dollar Index, which tracks the greenback’s performance against a basket of six rivals, falls 0.37%, down to 96.13. 

USD/CHF Price Forecast: Technical outlook

The USD/CHF pair has been seesawing around the 0.9160-0.9250 for the last fourteen days. The daily moving averages (DMAs) hover around the spot price, though trendless, almost horizontally providing support/resistance levels for the pair.

If the USD/CHF breaks to the downside, the first support would be the 200-DMA at 0.9176. the breach of the latter would expose the November 30 daily low at 0.9157, followed by a test of the 0.9100 figure.

Upwards, the first resistance would be 0.9250. A decisive break above that level could pave the way for further upside. The next resistance would be the December 15 swing high at 0.9294, followed by 0.9300, and the November 26 daily high at 0.9359.