- USD/CHF extends its rally to five consecutive days.
- USD/CHF: A break of a 4-month old downslope resistance trendline opened the door for a renewed test of 2021 year-to-date high.
The USD/CHF extends its gains the fifth consecutive day, up 0.25%, trading at 0.9355 during the day at the time of writing. Thin liquidity conditions in observance of Thanksgiving in the US keep the pair subdued.
Despite the abovementioned, European bourses closed in the green depicting risk appetite towards equities. Further, US equity futures are trading in the green, while the US Dollar Index, which tracks the buck’s performance against a basket of six rivals, slides 0.11%, sitting at 96.74.
USD/CHF Price Forecast: Technical outlook
The USD/CHF has an upward bias in the daily chart, as shown by the daily moving averages (DMA’s) with an upslope, residing well beneath the spot price. Furthermore, the break of an eight-month-old downslope resistance trendline indicates that the USD/CHF is tilted to the upside, though it would need a daily close above the abovementioned.
In that outcome, the first resistance on the way up would be the psychological 0.9400 figure. A breach of the former would expose the April 1 swing high at 0.9473, followed by the June 29, 2020 cycle high at 0.9528.
On the other hand, failure to hold above 0.9330 would expose the 0.9300 figure. A break below that level would reveal the confluence of the 50-DMA and the November 19 swing low around the 0.9225-50 region, which, once giving way, would leave the 0.9200 as the last line of defense for USD bulls.