US Dollar to Swiss Franc: Corrective Pullback Aims for 0.9150

Two as One

The USD/CHF exchange rate consolidated on their latest loss of one week low, regaining the bids to a new daily high around 0.9138 in the midst of early trades on Monday in the European market.

With that, even the increase of the 50-day moving average to the 100-day moving average joins the low MACD to give a boost to investors’ pulse.

After that, a decreasing resistance trend from January 10, which was about 0.9165-70, restricts the rebound of the USD/CHF pair ahead of the recent high, almost at 0.9180.

If those buying USD/CHF should manage to cross over the 0.9180 resistance, the declared daily moving averages will stand to be an obstruction to the pair’s continuous progress to 0.9210-15.

It is worth noting that the 61.8% and 50% Fibonacci declines between August to November 2021 upside, each nearing 0.9155 and 0.9200 are more push upward to the trading pair. Whereas the 78.6% Fibonacci level around 0.9090 is a relatively strong system to watch out for in the new decline.

If the USD/CHF exchange maintains a weak position beyond 0.9090, they both will become susceptible to fall back to the level of August 2021 near 0.9020.

The Dollar Trials

The USD has not been doing steadily in trade with other fiat currencies and precious metals for several weeks now. This is due to the Federal Reserve’s planned increased interest rate and other monetary policies.

Last two weeks, the US dollar was having a difficult time in European markets as it headed towards its lowest week in over a year. Traders were, at the time, considering the rates on interests by the Federal Reserve as too high.

Just last week, on a good note, gold’s retracement extended from a two-month high of $1848, and it gained new follow-up sales on the last trading day of the week to reach the targeted $1830 trading zone. The correction carried out picked up speed in the early stages of the European session, and it achieved spot prices to the $1828 zone in the middle of trading last week. The downward swing did not have an obvious catalyst, and it can be totally linked with investors’ desire for profit-making in the midst of speculations that the Federal Reserve was going to intensify the hold of its monetary policy and implement it earlier than many had thought.


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