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The USD/CHF is about to finish the trading week with decent gains of 0.39%. Risk-aversion dominates Friday’s US session, as throughout the whole week.
The USD/CHF pair also accelerates and reclaims the 0.9600 figure after negative US economic data, showing that the economy, although expanding, is doing it at a slower pace than estimated amidst a US Fed’s tightening cycle. The USD/CHF is trading at 0.9624.
US equities are falling, preparing to finish the week with substantial losses. Meanwhile, US Treasury yields have recovered some ground, while the greenback remains in the driver’s seat, as shown by the US Dollar index, up 0.58%, at 105.340.
The USD/CHF regained some composure and is trading near the week highs around 0.9641. USD/CHF traders should note that sellers failed to break below the 100-day moving average (DMA) at 0.9518, exposing the pair to additional buying pressure. Also, the Relative Strength Index (RSI) at 46 aimed upward and broke above the RSI’s 7-day moving average, meaning that buying pressure is mounting.
Therefore, the USD/CHF first resistance would be 0.9641. Break above would expose the 0.9700 mark, followed by the 50-DMA at 0.9732.
In the one-hour chart, the USD/CHF found its floor around 0.9500 on June 29, and since then, it has not looked back, achieving successive series of higher lows and higher highs, paving the way for further gains. It is worth noting that the major on its way north broke above the simple moving averages (SMAs), further cementing the case of recovery to the upside.
