USD/CHF Price Analysis: Bulls regain momentum but falter to reclaim 0.9650

• The USD/CHF extends its rally to two consecutive days, up by 0.57%.
• Risk-aversion bosts the appeal for the greenback, while safe-haven peers remain on the defensive.
• USD/CHF Price Forecast: Bulls keeping the major above 0.9600 would open the door for further gains.

The USD/CHF advances for the second consecutive day though faltering of breaking above June 5, 2020, at 0.9652, but positive in the week, trimming some of last week’s losses by 0.57%. At the time of writing, the USD/CHF is trading at 0.9625, gaining 0.35%.

Sentiment remains negative. Hostilities in the Ukraine-Russia conflict escalated, with the Russian military advancing in an industrial city, via Reuters. Meanwhile, broad US Dollar strength and investors worry that the US Federal Reserve tightening monetary policy conditions could bring the economy into a recession, boosts the USD/CHF.

The US Dollar Index, a gauge of the buck’s value vs. a basket of peers, edges higher by 0.75%, and sits at 102.530. At the same time, US Treasury yields advanced, led by the 10-year benchmark note rate up by nine bps up at 2.937%.

The USD/CHF Wednesday’s price action shows that bulls get some momentum back, lifting the pair from below the 50-day moving average (DMA) at 0.9583, and reaching a daily high at 0.9658. Nevertheless, they lacked the strength to keep the pace but kept the USD/CHF above the 0.9600 mark.

USD/CHF Price Forecast: Technical outlook

The USD/CHF 1-hour chart depicts the pair forming a “saucer-bottom,” a bullish chart pattern. However,  the Relative Strength Index (RSI) at  55.62 aims lower, meaning the major is consolidating before resuming upwards. Further confirming the uptrend are the hourly simple moving averages (SMAs), sitting below the exchange rate.

Therefore, the USD/CHF bias is upwards. That said, the USD/CHF first resistance would be the Bollinger band top band at 0.9641. Break above would expose the June 1 high at 0.9658, followed by the R3 daily pivot point at 0.9676.

Key Technical Levels