USD/CHF Price Analysis: Prints a new 2-year-high around 0.9539 as it aims towards 0.9600

• The Swiss franc extends its losses in the week, down 1.24%.
• Risk-on market mood and higher US Treasury yields weighed on the CHF.
• USD/CHF Price Forecast: A daily close above 0.9533 would open the door for a 0.9600 test.

On Thursday, the USD/CHF grinds higher amidst an upbeat market mood, up some 0.37% in the North American session. At the time of writing, the USD/CHF is trading at 0.9535.

So far, the market sentiment remains positive, as the European and US equities remain trading in the green. US Treasury yields remain elevated in the North American session, underpinning the greenback. The US Dollar Index, a gauge of the buck’s value vs. a basket of its peers, edges up 0.17%, sitting at 100.514, near the daily highs, after falling under the 100.000 threshold.

The Swiss franc fall is courtesy of market sentiment. Due to its status as a safe-haven peer, it usually depreciates in times of risk-on market mood. Also, the Swiss National Bank (SNB), one of the most actives central banks in FX, favors a weak CHF, so it’s not rare seeing it intervening in the USD/CHF and the EUR/CHF pairs.

USD/CHF Price Forecast: Technical outlook

The last two days’ USD/CHF price action kept the bullish bias on the pair, further confirmed by Wednesday’s close above 0.9480. the daily moving averages (DMAs) reacted to recent price action and turned upwards, but the Relative Strength Index (RSI) at 71.26, within the overbought territory, might put a lid on USD/CHF gains.

The USD/CHF first resistance would be June 2020 highs at 0.9538. A breach of the latter would expose the 0.9600figure. Once cleared, the following supply zone would be Ju

Key Levels to Watch