USD/CHF Price Analysis: Erases earlier losses, aims towards 0.9330s after Powell speech

• The USD/CHF is advancing so far in the week, some 0.10%.
• Risk-aversion in the financial markets boosts the greenback as low-yielder peers drop.
• USD/CHF Price Forecast: Neutral-upwards if it remains above 0.9250.

USD/CHF incurred earlier losses during the North American session amid a risk-off market mood due to Russia-Ukraine woes while Fed’s Chair Powell crossed the wires. However, jumped of those lows, and at the time of writing, the USD/CHF is trading at 0.9326.

The market sentiment is downbeat, as portrayed by US equities, dropping. The US Dollar Index, a gauge of the greenback’s value against a basket of its rivals, gains some 0.16%, sits at 98.30, underpinned by Jerome Powell’s remarks.

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Overnight, the USD/CHF began the week near last Friday’s close and jumped near the 200 and 50-hourly simple moving averages (SMAs), falling afterward near the S1 daily pivot at 0.9292 amidst a risk-off market mood which favored the Swiss franc.

USD/CHF Price Forecast: Technical outlook

The USD/CHF bias is neutral-upwards. In the last four days, the pair underwent a correction from around 0.9470s (a new YTD high) towards February 10 daily high, previously resistance-now-support at 0.9296. Further, as portrayed by the daily chart, the USD/CHF appears to be ready to resume the uptrend. Monday’s candlestick price-action is forming a doji after a downtrend, meaning “indecision” of USD/CHF traders.

That said, upwards, the USD/CHF first resistance would be January 31 daily high at 0.9343. A decisive break would expose November 24, 2021, a daily high at 0.9373, followed by 0.9400. On the flip side, the USD/CHF first support would be the 0.9300 mark, followed by 0.9296, followed by an eleven-month-old downslope trendline, previous resistance-turned-support around the 0.9260-75 area.