USD/CHF Price Analysis: Buyers reclaim the 50-DMA, eyeing a break of 0.9800 towards parity

  • During the week, the Swiss franc is still under heavy pressure, losing more than 2%.
  • Broad US dollar strength across the board underpins the USD/CHF.
  • USD/CHF Price Analysis: The pave towards parity is clear, but 0.9800 and 0.9975 are still on the way for USD/CHF buyers; otherwise, a re-test of 0.9700 is on the cards.

The USD/CHF marches firmly for the sixth straight day, trading near weekly highs around 0.9790s, after falling from around YTD highs at parity, though since then, the major is up by almost 300 pips, though shy of reaching 0.9800. At the time of writing, the USD/CHF is trading at 0.9785.

Sentiment shifted for the worse in the last hour or so for no fundamental reason. However, traders should not tat US President Biden was due to meet with advisers on China’s tariffs late on Friday, though it remains unclear if he would make a decision or not, according to Reuters sources. Meanwhile, US equities trade in negative territory, and the greenback shifted positive, as shown by the US Dollar Index up 0.01%, at 107.044.

Aside from this, the USD/CHF began Friday’s session trading around 0.9730s and dipped toward the daily low around 0.9720 before rallying to the daily high at 0.9797.

USD/CHF Daily chart

The USD/CHF broke above the 50-day moving average (DMA), clearing the way for a re-test of parity. However, April’s 2020 high around 0.9802 has been a tough nut to crack, but once done, a rally towards USD/CHF’s parity is on the cards. Nevertheless, on its way north, the USD/CHF traders must overcome the May 10  high at 0.9975.

Otherwise, the major would be vulnerable to selling pressure, and a fall towards the 50-DMA at 0.9735 is on the cards, and then the USD/CHF could slip to the 0.9700 figure.

USD/CHF Key Technical Levels

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