USD/CHF Price Analysis: Retreats from daily highs 80-pips but stalled at the 200-DMA at 0.9179

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  • The market sentiment is downbeat spurred by developments in the Ukraine – Russia war, increasing appetite for safe-haven peers, with the greenback rising, except for the CHF.
  • Newly imposed sanctions in Russia spurred a rate hike of the Russian Central Bank of 1100 basis points amid ruble’s free-fall.
  • USD/CHF Technical Outlook: Neutral bias, but upside/downside risks remain, as USD/CHF traders test the 200-DMA.

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.

USD/CHF Price Forecast: Technical outlook

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.