USD/CHF Price Analysis: Bounces off a double-top pattern target at 0.9190, climbs towards 0.9260s

• The USD/CHF grind higher, up some 0.62%, as the greenback safe-status outweighed the Swiss franc.
• Market sentiment hit by COVID-19 restrictions amid the fourth wave in Europe.
• COVID-19 omicron variant transmissibility threatens to overwhelm hospitals.
• USD/CHF Price Forecast: Range-bound waiting for US inflation figures.

After reaching a double-top chart pattern target on Wednesday, the USD/CHF has reversed its course, is advancing sharply, trading at 0.9255 during the New York session at the time of writing. Investors’ mood is downbeat as participants assess COVID-19 restrictions in countries being hit by the fourth wave, threatening a slowdown in the economic recovery. Furthermore, omicron increased transmissibility, increased worries that hospitals could be overwhelmed, despite the less severe symptoms caused by the strain.

That said, the greenback has regained its safe-haven status, with the US Dollar Index rising 0.38%, sitting at 96.26, a tailwind for the USD/CHF pair, gaining 0.62% in the day.
In the overnight session, the USD/CHF dipped as low as 0.9190, then bounced immediately, reclaiming the 0.9200. Then, the pair edged slightly up around the central daily pivot at 0.9215, followed by a climb towards the December 8 high at 0.9252.

USD/CHF Price Forecast: Technical outlook

In the 4-hour chart, the USD/CHF has been seesawing around the 200 and the 100-simple moving average in a range-bound environment. The lack of catalyst would keep the pair trading at familiar levels, around 0.9190s-0.9260, waiting for Friday’s release of the US Consumer Price Index for November.

At press time, the spot price is near the 100-SMA, which lies at 0.9258, facing strong resistance. If the USD/CHF breaks to the upside, it will find resistance levels around 0.9270s; an area respected by traders since November 29, followed by the figure at 0.9300.

On the flip side, the first support would be the R1 daily pivot at 0.9234, followed by a strong confluence of support levels with the 50, the 200-SMA’s, and the central daily pivot point at 0.9214.