The US dollar has failed on its third attempt to regain the 0.9300 level, and retreated earlier today, to extend losses following the release of a disappointing US Non-Farm Payrolls report. The pair, however, has found support at 0.9260, before ticking up towards 0.9275 area on the late US session. the USD/CHF pair regained positive traction on the last day of the week and was supported by a combination of factors. The US dollar continued drawing support by rallying US Treasury bond yields, bolstered by prospects for an early policy tightening by the Fed. Apart from this, the underlying bullish sentiment in the financial markets undermined the safe-haven Swiss franc and acted as a tailwind for the major.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Given the RSI line trending upwards, the latest resistance break will help the pair bulls to keep reins.

In doing so, the quote may rise towards the upper line of the one-month-old ascending triangle, near 0.9330. However, any further upside will need to cross September’s high of 0.9368 to keep the fort.

It should be noted that the USD/CHF advances past 0.9368 will aim for the 0.9400 threshold before highlighting the yearly peak near 0.9470.

On the flip side, the resistance-turned-support and the lower line of the stated triangle, respectively near 0.9280 and 0.9245, will question the pair’s short-term downside.

Even if the USD/CHF falls below the 0.9245 support, theoretically confirming the bearish move, the 200-SMA level of 0.9223 will probe the south run.

USDCHF

Oct 09 2021