FX

USD/CHF Price Analysis: To re-test the double top neckline around 0.9540

  • The USD/CHF remains negative in the week, losing 1.16%.
  • A positive market mood deterred USD/CHF sellers from confirming the double top chart pattern.
  • USD/CHF Price Analysis: Double top remains in play, but USD/CHF require to hold spot prices below 0.9600.

The USD/CHF slumps for the fifth consecutive day, though bounced off weekly lows reached during the day near 0.9521, towards the 0.9580s region, shy of reclaiming the 0.9600 figure. At 0.9589, the USD/CHF lost 0.13% on Friday, extending its weekly losses to 1.16%.

The market mood remains upbeat as US equities post gains between 2.13% and 2.47%. That is courtesy of the University of Michigan’s inflation expectations easing from a 14-year high, meaning that the Fed needs to tighten but not as previously expected by market players, which now foresee the Federal funds rate (FFR) near 3.50%. Furthermore, US recession fears abated as St. Louis Fed President James Bullard said that worries are overblown.

In the meantime, the USD/CHF opened above 0.9600 and edged higher towards Friday’s daily high, retreating afterward to daily lows near 0.9521, though of late settled around the 0.9580 area.

USD/CHF Price Analysis: Technical outlook

Daily chart

The USD/CHF is still in an uptrend but remains trapped between the 50 and 100-day moving averages (DMAs). It’s worth noting that the major formed a double top in the daily time frame but still requires a daily close below May’s 27 swing low at 0.9544 to validate the pattern.

Therefore, a USD/CHF daily close below 0.9544 would open the door for the 100-DMA at 0.9502. Break below would expose the 0.9400 mark, followed by the 200-DMA at 0.9357.

However, if the ongoing uptrend resumes, the USD/CHF’s first resistance would be 0.9600. A breach of the latter would expose the 0.9700 figure, followed by the 50-DMA at 0.9772, and then a test of June’s 16 daily high at 0.9989.

USD/CHF Key Technical Levels

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