The USD/CHF pair maintained its bid tone through the early North American session, with bulls now awaiting sustained strength above the 0.9200 round-figure mark.

The pair staged a goodish rebound from the 0.9150 area, or the four-week low touched earlier this Tuesday and has now reversed a major part of the previous day's losses. The momentum was sponsored by receding safe-haven demand amid a turnaround in global risk sentiment, which weighed on the Swiss franc and extended some support to the USD/CHF pair.

It should be noted, however, that the bearish MACD signals join the pair’s successful trading below the 50-DMA and 200-DMA, to favor sellers targeting an eight-month-old support line near 0.9120.

In a case where USD/CHF drops below 0.9120, the 2022 bottom surrounding 0.9090 will be in focus.

On the flip side, corrective pullback needs validation from the 200-DMA level of 0.9180 before directing buyers towards the 50-DMA, close to 0.9200 by the press time.

Should USD/CHF rally beyond 0.9200, a downward sloping resistance line from January 31, around 0.9250, may lure the pair buyers.

Moreover, Russia extended military drills in Belarus that were due to end on Sunday. Hence, the focus will be on the upcoming meeting between the US Secretary of State Antony Blinken and Russian Foreign Minister Sergei Lavrov planned for February 24. In the meantime, investors will keep a close eye on developments surrounding the Ukraine conflict, which will influence the risk sentiment and provide some impetus to the USD/CHF pair.

USDCHF Expected to Test 0.9275 Before Bearish Continuation

Feb 22 2022