USD/CHF Price Analysis: Faces strong resistance around the 200-DMA

The USD/CHF extends its Tuesday’s losses, trading at 0.9157 at the time of writing. Risk-sensitive currencies remain bid, while safe-haven peers drop. In the CHF case, it gains against the greenback, following the Japanese yen footsteps, which gains some 0.14% vs. the buck.

The USD/CHF was subdued in the overnight session, trading within the 0.9140-68 band, failing to extend its Tuesday’s fall. On the bottom, the downward move was capped near the S1 daily pivot at 0.9135, while upwards, the daily pivot point at 0.9164 was the ceiling for the USD/CHF pair.

In the meantime, US Treasury yields recover from earlier losses, the 10-year benchmark note up one basis point, at 1.677%.

USD/CHF Price Forecast: Technical outlook

The USD/CHF has a neutral bias, depicted by the daily moving averages (DMAs) with a horizontal slope residing around the spot price. However, an upslope trendline drawn from December 2020 cycle lows to the June 2021 swing lows provided support, as the downward move pierced the aforementioned, rebounded strongly towards the 200-DMA around 0.9169.

To the upside, the first resistance would be the 200-DMA. A break above that level would open the door for a confluence of the 50 and the 100-DMA around 0.9205-15 area, that once broken would open the door towards the December 15 cycle high 0.9294 and then 0.9300.

On the other hand, a decisive break under the 0.9150 figure would open the door for 0.9100, followed by the November 2 swing low at 0.9085 and then the psychological 0.9000.