USD/CHF Price Analysis: Bounced off the 50-DMA as bull’s target 0.9300

• The USD/CHF was choppy in the Asian/European session, but Fed speaking remarks triggered a jump in the exchange rate.
• USD/CHD Price Forecast: Neutral, but slightly tilted upwards.

The USD/CHF grinds higher and breaks above an eleven-month-old downslope resistance trendline, near the 0.9260 area, a confluence with the 50-day moving average (DMA), and sets to reclaim the 0.9300 mark courtesy of a dampened market mood in the financial markets. At the time of writing, the USD/CHF is trading at 0.9296.

Overnight, the USD/CHF was in choppy trading around 0.9250-60 area, but jumped of late in the North American session, towards the 0.9290s region on hawkish remarks by the Federal Reserve Governor Lael Brainard.

Fed’s Brainard said that the Fed “is prepared to take stronger action if inflation and inflation expectations suggest the need to do so.” She added that the balance sheet might reduce its balance sheet in May.

USD/CHD Price Forecast: Technical outlook

The USD/CHF is neutral biased but reclaimed to trade above the 50 and the 200-day moving average (DMA), each at 0.9261 and 0.9210, respectively. It is worth noting that the Relative Strength Index (RSI) is back above the 50-mid line, at 52.07 in bullish territory, which opens the door for further upside.

That said, the USD/CHF first resistance would be 0.9300. A decisive break would expose January 31 daily high at 0.9343, followed by November 23 cycle high at 0.9373, and then 0.9400.

On the flip side, the USD/CHF first support would be the 50-DMA at 0.9261. Breach of the latter would send the pair sliding towards the 200-DMA at 0.9210, followed by March 31 swing low at 0.9194.

Technical levels to watch