The USD/CHF pair has violated the trendline placed from February 10 highs of 0.9297 decisively after trading back and forth in a wide range of 0.9150-0.9297. In the early Tokyo session, the major has opened near Tuesday’s closing price and is aiming to scale higher amid a broad risk-off impulse.

Prior to these headlines, the major focus of the day was on new Western sanctions on Russia, with the US banning all Russian energy imports and the UK announcing plans to quickly phase out imports.

On the four-hour chart, USD/CHF has managed to overstep the trendline placed from February 10 highs of 0.9297, which is adjoining the February 24 high at 0.9289. The pair has given a breakout above the trendline, which is followed by a pullback near the surface of the trendline at 0.9280.

The Swiss currency (CHF) pair’s latest losses could be linked to the downside break of a one-week-old rising trend line, as well as bearish MACD signals.

That said, the USD/CHF bears keep their eyes on the 100-HMA, around 0.9230, as nearby support.

However, the 200-HMA and 61.8% Fibonacci retracement of the pair’s one-week advances, close to 0.9220, appear a tough nut to crack for the pair bears.

On the contrary, a downward sloping trend line from late Tuesday, near the 0.9300 round figure, precedes the latest top surrounding 0.9305 to test the USD/CHF bulls.

Following that, highs marked during January 2022 and November 2021, around 0.9345 and 0.9375 in that order, will challenge the pair’s further upside.

Overall, USD/CHF is likely to witness further downside further bulls aren’t out of the woods.

USDCHF to be Dominated by Bearish Momentum

Mar 09 2022