During the North American session, the USD/CHF advances close to 1%, trading above 0.9300 for the first time since November 2021 highs. At the time of writing, the USD/CHF exchanges hands at 0.9312.

A risk-on market mood dented the prospects of the Swiss franc, which usually rallies on risk aversion. In the meantime, the US Dollar marches firmly throughout the session, with the US Dollar Index (DXY) advancing 1.23%, sitting at 97.131.

The US dollar built on the overnight hawkish FOMC-inspired strong gains and shot to the highest level since July 2020 amid expectations for a faster policy tightening by the US central bank. In fact, Fed Chair Jerome Powell, answering a question during the post-meeting press conference, kept the door open for a 50 bps rate hike in March. This, in turn, was seen as a key factor that assisted the USD/CHF pair to capitalize on its strong weekly gains and continue scaling higher for the fourth successive day on Thursday.

The USD/CHF is upward biased. On Wednesday, the pair broke resistance levels on its way towards 0.9300, like the 50 and 100-day moving averages (DMAs), lying at 0.9204 and 0.9212. Furthermore, it broke a downslope resistance trendline drawn from April – September 2021 cycle highs that pass around the 0.9300-05 area. However, due to the nature of the movement, a pullback towards the figure, or December 15, 2021, a daily high at 0.9294, is on the cards.

That said, the USD/CHF first support is 0.9300. A break of that level immediately suggests a test of December 15, 2021, high at 0.9294, followed by a January 26 daily high at 0.9246.

Contrarily, to the upside, the first resistance is November 2021 cycle high at 0.9373. A breach of the latter would expose the 0.9400 figure, followed by April 2021, swing highs at 0.9472.

USDCHF Struggling Against a Strong Order Block

Jan 27 2022

Take Profit +1.63%

Holding time 17d3hr

0.93110

Entry price

0.91590

Take profit price