USD/CHF Price Analysis: Trips down below 0.9700 as mood improves

• USD/CHF is still upward biased, but in the short-term might aim towards 0.9600.
• A market sentiment shift, dented demand for the greenback, and a headwind for the USD/CHF.
• USD/CHF Price Analysis: Downwards-to-neutral, and if sellers reclaim 0.9670, the major will tumble towards 0.9600.

The USD/CHF slides for the second day in four retreats below 0.9700, amidst an improved market mood weighing on the greenback after the ECB delivered its first rate hike in 11 years, which initially sent the USD/CHF towards its daily low at 0.9667. Nevertheless, buyers stepped in and saw it as an opportunity for a better entry price. At the time of writing, the USD/CHF is trading at 0.9694.

Of late, sentiment shifted upbeat, as shown by US equities rising. Nonetheless, it remains fragile, with high global inflation, worldwide economic slowdown, and a US recession looming. Efforts of global central banks to tighten monetary conditions would likely end with a worldwide recession.

USD/CHF Price Analysis: Technical outlook

On Thursday, the USD/CHF began trading around 0.9700 but climbed as the mood shifted sour, hitting a daily high at 0.9739. However, earlier gains were retraced on the ECB’s decision, which sent the major to the daily low at around 0.9667 before marching firmly, shy of the 0.97000 mark. Nevertheless, the USD/CHF daily chart is upward biased, and unless sellers reclaim 0.9495, buyers remain in charge.

USD/CHF 1-hour chart

The USD/CHF hourly chart portrays the major as downwards-to-neutral biased, with the SMAs above the exchange rate. Also, the Relative Strength Index (RSI), albeit flat, is in negative territory and below the RSI’s 7-day SMA, further cementing the bias. All that said, alongside USD/CHF price action below the mid-line of an ascending channel, suggest the downtrend would continue in the short term.

Therefore, the USD/CHF first support would be the S1 daily pivot at 0.9675. A breach of the latter will immediately expose the bottom trendline of the aforementioned ascending channel, meaning that the USD/CHF next target would be 0.9600. However, firstly the USD/CHF sellers would need to clear the S2 pivot point at 0.9641 before reaching the 0.9600 figure

USD/CHF Key Technical Levels