USD/CHF Price Analysis: Extends its free-fall beyond the 200-DMA as bears eye 0.9100

• Geopolitical tensions favor the safe-haven appeal of the Swiss franc vs. the greenback.
• The USD/CHF broke the 200-DMA, accelerating the downtrend.
• USD/CHF Technical Outlook: Neutral-downward biased and could shift downwards if the USD/CHF reclaims the 0.9107 mark.

Increasing tensions in Eastern Europe triggered a flight to safe-haven peers, in the case of the USD/CHF, a headwind for the USD, boosting the Swiss franc. Furthermore, the break of the 200-DMA accelerated a move towards 0.9100. At the time of writing, the USD/CHF is trading at 0.9154.

The market mood is risk-off by the no-resolution of the Ukraine/Russia conflict. European bourses remain to trade in the red, reflecting investors risk-aversion. The cash US equity indices are closed during the US President’s day and would resume trading on February 22. However, US indices in the futures market are trading with losses.

During the overnight session, the USD/CHF retreated from daily highs above the 0.9200 figure before the European session. The downtrend resumed once European traders got to their desks, breaking the February 18 daily low at 0.9191.

USD/CHF Price Forecast: Technical outlook

On Monday, the USD/CHF broke the 200-day moving average (DMA), which also confluences with the February 3 daily low at 0.9177, accelerating the downtrend.

Therefore, the USD/CHF is neutral-downward biased and would be downwards once it breaks the next support level at January 21 daily low at 0.9107. Breach of the latter would expose the January 13 daily low at 0.9192, the bottom of the trading range, which once cleared would expose April’s 2021 lows at 0.9018.