The USD/CHF pair maintained its bid tone through the first half of the European session and was last seen trading just a few pips below the daily high, around the 0.9275 region.

Following the overnight pullback from the vicinity of the 0.9300 mark, the USD/CHF pair caught fresh bids on Friday and inched back closer to the weekly high amid a broad-based US dollar strength. Firming expectations for a faster policy tightening by the Fed turned out to be a key factor that continued underpinning the greenback.

That said, the quote’s latest rebound eyes the stated range’s upper line, around 0.9260 but any further upside will be challenged by multiple lows marked during late January around 0.9300.

Should the USD/CHF prices rally beyond 0.9300, a run-up towards the last month’s peak of 0.9343 can’t be ruled out.

Alternatively, an upward sloping trend line from January 24 joins the aforementioned range’s lower line to highlights 0.9225 as the short-term key support.

Following that, 100-SMA and 200-SMA, respectively near 0.9215 and 0.9190, will challenge the USD/CHF pair.

Also acting as a downside filter is the monthly low near 0.9180-75.

To sum up, the gradually rising Momentum line and multiple challenges for the USD/CHF bears make it easier for the bulls to keep reins.

What may serve as a driver for the swiss, other than geopolitical risks such as Russia for its safe-haven allure, could be the divergence, or convergence, between the European Central Bank and the Fed. Last week the ECB opened the door to a rate hike later in 2022 as inflation risks rose. This had a profound effect on the forex space, lifting the euro and weighing heavily on the greenback.

USDCHF Failure To Break The Order Block Will Entertain Bears

Feb 11 2022

Take Profit +1.80%

Holding time 23d11hr

0.92790

Entry price

0.91120

Take profit price