In early trading this morning, the USD/CHF is challenging support levels within sight of 0.92450 and moving rather fast. After touching highs last week near the 0.93750 mark, which had not been traversed since July of 2021, the USD/CHF may lead speculators to believe it has the ability to once again reestablish a bearish trend.
However, the mid-term range of the USD/CHF has actually been choppy and bullish since the first week of January 2021. The USD/CHF has challenged speculators who have been pursuing the notion that downward sentiment is going to generate staying power.
The USD/CHF remains within the upper band of its range as it holds onto higher values it has sustained in March. However, if support levels near the 0.9245000 to 0.92370 junctures start to prove vulnerable, it could seriously cause a troubling amount of stress on existing short-term and mid-term sentiment.
The current value range of the USD/CHF should be watched closely by speculators. If the value of the Forex pair is able to sustain its higher levels today and tomorrow, the USD/CHF may prove to embrace a durable higher stance. However, if support levels continue to erode and March values fall to prices seen in February, a change of trend may prove worthwhile to contemplate.
Since the start of March the USD/CHF has seen a dramatic amount of bullish momentum engulf the Forex pair. As late as the middle of February, the USD/CHF was trading near the 0.88700 mark below, this after coming off early February highs near the .90350 level. It has been the past month of trading in which global risk appetite from financial institutions have been having their sentiment challenged in the US bond markets that the USD/CHF has seen its volatility build.
Traders may choose to be careful, but the current price action of the USD/CHF appears technically that it may be signaling many of the bullish gains achieved the past couple of weeks may ready to be challenged and altered. Selling the USD/CHF at its current price levels may prove to be a worthwhile speculative wager for traders who want to pursue the notion that bearish sentiment may be gaining momentum in the near term.
Swiss Franc Short-Term Outlook:
Current Resistance: 0.92890
Current Support: 0.92450
High Target: 0.92980
Low Target: 0.92370
