In the last week, the USD/CHF recorded gains of 0.46% amid a busy day in the financial markets, amid Ukraine – Russia war, which grabbed most of the headlines, spurring fluctuations in the market mood. At the time of writing, the USD/CHF is trading at 0.9183.
Stringent sanctions imposed during the weekend by the US, Europe, and other countries dampened the market mood, with stocks falling, haven assets rallying, like the greenback and the Swiss franc, while precious metals and oil rise. It is worth noting that the Russian Central Bank hiked rates from 9.50% to 20% to cap the plunging ruble.
In the overnight session for North American traders, the USD/CHF reached a daily high at 0.9277, appearing to break the top of the trading range. However, as soon as European traders got to their offices, the pair plummeted almost 90-pips to 0.9180 as traders rushed to security liquidity.
The USD/CHF tests the 200-day moving average (DMA) at 0.9179, and on its way south, the USD/CHF broke the 50 and 100-DMAs at 0.9197 and 0.9205, each. If the USD/CHF registers a daily close of the 200-DMA, that could expose February 21 swing low at 0.9150, followed by January 21 pivot low at 0.9105 and the 2021’s November 2 low 0.9085.
Upwards, the first resistance would be the 50-DMA at 0.9197. Breach of the latter would expose the 100-DMA at 0.9205, followed by February 24 daily high at 0.9288.