- USD/CHF made up all the ground lost after the Fed and is gaining 1.32%.
- A dismal market mood, fueled by central bank tightening and the covid crisis in China, threatens to disrupt the global economic recovery.
- USD/CHF Price Forecast: If the bulls retake 0.9900, a move towards parity is on the cards.
The Swiss franc is losing ground against the dollar, and USD/CHF continues to head for a new yearly high after each of the last seven trading sessions amid dismal market sentiment. USD/CHF is trading above 0.9852, rising on the day, although it has pulled back from daily and yearly highs around 0.9890.
USD/CHF reversed Wednesday’s gains after falling to weekly lows hit on May 2 around 0.9713, but staged a comeback and at time of writing is testing May 4’s daily high at 0.9852.
USD/CHF Price Prediction: Technical Outlook
USD/CHF is biased to the upside from a daily chart perspective, as shown by the daily moving averages (DMAs) that are below the exchange rate. However, the Relative Strength Index (RSI), well inside the overbought territory at 79.01, could suggest that the pair is about to peak, pointing to the upside.
With that said, the first resistance for the USD/CHF would be the daily high of March 23 at 0.9901. Once surpassed, the next step would be parity at 1,000.
Source: Fx Street
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