USD/CHF Advances as bulls eye 20-DMA

On the week’s last trading day, the USD/CHF pair jumps from weekly lows erasing Thursday’s losses, the pair also gains 0.56% as the New York session gets closer to its end. The USD/CHF is trading at 0.9626, reflecting a downbeat mood and a strong US Dollar, underpinned by high US Treasury yields.

Market sentiment is still negative because of accelerating recession concerns. Risk aversion dominates Friday’s trading session. US equities point to a lower close, losing between 0.83% and 2.36%, on the same narrative since the beginning of the week. Investors’ fears that the hawkish Fed could cause a recession.

Supply chain disruptions, which worsened with China’s Covid-19 crisis, which seems to be left behind, and Russia’s invasion of Ukraine, are still issues that keep market players uneasy. The USD/CHF Friday’s price action opened near 0.9570 and dipped towards the S1 daily pivot near 0.9552. Nevertheless, buyers entered the market around the European open and rallied sharply, though hesitated, at the time of the US Nonfarm Payrolls report release, though reached a daily high at 0.9642.

Technically; the USD/CHF is upward biased, and in fact, buyers reclaimed the 50-day moving average (DMA) at 0.9595. Nevertheless, the Relative Strength Index (RSI), albeit pointing upwards, remains in bearish territory. If USD/CHF buyers would like to exacerbate a move towards the 20-DMA at 0.9757, they would need a daily close above June 1 high at 0.9660.

Therefore, the USD/CHF first resistance would be the previously mentioned 0.9660. A break above would expose the 0.9700 figure, followed by the confluence of the 20-DMA, and the May 20 high around the 0.9757-64 territory.