USD/CHF Price Analysis: Retreats from 0.9370s to 0.9320s despite firm US dollar

• The Swiss franc is gaining 0.13% on Tuesday.
• Higher US Treasury yields failed to underpin the USD/CHF pair.
• USD/CHF Price Forecast: An inverted head-and-shoulders in the 4-hour chart looms, though to confirm its validity, would need to reclaim 0.9373.

After reaching a daily high at 0.9375, and a daily low at 0.9314, the USD/CHF stabilizes below January’s 31 pivot high at 0.9343, amid a risk-on market mood and higher US Treasury yields. The USD/CHF is trading at 0.9327 at press time during the North American session.

In the meantime, the US Dollar Index, a gauge of the greenback’s value against a basket of its rivals, advances some 0.01%, sits at 98.474 but fails to underpin the USD/CHF. At the same time, US Treasury yields are soaring, led by 5s and 10s, each one at 2.397% and 2.381%, respectively.

Overnight, the USD/CHF began in the Asian session on a higher note, pushing through November 24, 2021, high at 0.9373, but USD bulls failed to hold their reins, as the pair dropped sharply, breaking on its way the 100, 200 and the 50-hour simple moving averages (SMAs) on its way south, to stabilize near the 0.9320 mark.

USD/CHF Price Forecast: Technical outlook

From the daily chart perspective, the USD/CHF is upward biased. However, USD bulls faltering to keep the exchange rate above 0.9343 exposed the pair to the 0.9297-0.9343 range.

4-Hour chart

The USD/CHF is also upward biased from an intraday perspective, as depicted by the simple moving averages (SMAs) in a bullish order. However, the 50-SMA lies above the spot price at 0.9357 and would be the first resistance level.

It is worth noting that an inverted head-and-shoulders pattern could be forming, but the USD/CHF would need to break upwards to confirm the right-shoulder formation. That said, the USD/CHF first resistance would be 0.9357. A decisive break would expose the inverted head-and-shoulders neckline near November 24, 2021, cycle high at 0.9373, followed by the 0.9400 mark.