• The Swiss franc gained more than 2.50% vs. the greenback.
  • A dampened market mood and a strong US dollar capped the USD/CHF nosedive in the week.
  • USD/CHF Price Forecast: Although the major held a massive loss in the week, it remains upward biased unless USD/CHF bears push the pair below the 0.9700 mark.

The USD/CHF is trimming some of its losses, bouncing off the weekly lows at around 0.9700 and pushing to reclaim 0.9750, amidst a dismal sentiment portrayed by US equities recording losses. Also, broad US dollar strength is a tailwind for the pair, despite hefty losses in the 10-year US Treasury yield, which fell from 3% to 2.785%, near weekly lows. At 0.9762, the USD/CHF is gaining 0.35% and eyes to pierce the 20-DMA at around 0.9827.

From a technical perspective, the USD/CHF tumbled in total 250-pips after reaching parity on May 12. USD/CHF traders would need to be aware that Friday’s uptick spurred a reaction in the Relative Strength Index (RSI), which plunged from overbought levels to the 50-midline, and as of writing, it is aiming up at 51.28.

USD/CHF Price Forecast: Technical outlook

That said, the USD/CHF remains upward biased, as the daily moving averages (DMAs) are still below the spot price. The USD/CHF first resistance would be the figure at 0.9800. A breach of the latter would expose the 20-DMA at 0.9827, followed by March 23, 2020, a daily high at 0.9901, and then the parity.

On the flip side, the USD/CHF first support would be 0.9700. Break below would expose the 0.9600 mark, closely followed by the 50-DMA at 0.9545.

Key Technical Levels

This article was originally published by Fxstreet.com.Read the original article here.

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