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  • The USD/CHF pair is trading with a bullish bias at the 0.9220 level during the European session, soaring +0.87%.
  • The downside remains cushioned amid the US dollar’s strength, buoyed by the recent surge in US Treasury bond yields. 
  • Forex trading market participants may buy trades above the $0.911 level to target the $0.9240 and $0.9270 levels.

The USD/CHF pair is trading with a bullish bias at the 0.9220 level during the European session, soaring +0.87%. The USD/CHF currency pair extended its previous session winning streak and hit near three-week highs in the last hour. The USD/CHF price forecast seems bullish at about the 0.9191 support level, and it’s likely to go after the resistance level of 0.9240.

If you are interested in trading USD/CHF with forex robots, check out our guide.

The worries about the fast-spreading Delta-variant of the coronavirus keep weighing on the market’s trading sentiment. This was evident from a softer risk tone, which underpinned demand for the safe-haven Swiss franc. This, in turn, was seen as one of the critical factors that capped the further upside for the USD/CHF pair. 

Whereas the currency pair’s gains continue to be supported by modest US dollar strength, aided by a recent surge in US Treasury bond yields. The yield on the benchmark 10-year US government bond shot to the highest level since mid-July, around 1.385%. That’s because of the expectations of an imminent Fed taper announcement.

Fear of Covid-19 Continues to Play

At this particular time, the USD/CHF pair is trading at 0.9221 and consolidating in the range between 0.9240 0.9214. Despite a drop in virus figures from Australia and New Zealand (NZ), the market’s trading sentiment failed to stop its early-day bearish performance. It remained well offered during the first half of the European session on that day.

The fast spread of COVID-19 and its Delta variant in the US kept the market’s trading sentiment under pressure. Thus, it fueled the safe-haven demand in the market and provided a goodish lift to the safe-haven Swiss franc. Elsewhere, the remembrance of the last week’s downbeat US jobs reports and ISM data also put extra pressure on the market trading sentiment. In turn, this failed to help the USD/CHF pair capitalise on this week’s goodish rebound from the 0.9120-15 support zone.

A stronger US dollar drives the USD/CHF bullish bias.

The downside remains cushioned amid the US dollar’s strength, buoyed by the recent surge in US Treasury bond yields. The US Dollar maintained its previous day’s bullish bias and hit near a one-week peak on Wednesday against major peers.

The US dollar’s bullish bias was buoyed by higher Treasury yields and a weaker euro amid caution before a European Central Bank policy decision. The US Dollar Index that tracks the greenback versus a bucket of other currencies rose by 0.03% to 92.543. Thus, the upbeat bias in the dollar tends to underpin the USD/CHF currency pair.

The lack of significant data or events may restrict the market’s moves, but the qualitative catalysts like virus woes and economic fears can keep weighing on the USD/CHF prices. Meanwhile, the comments from Fed New York President John C. Williams will not lose their importance.

USD/CHF Price Forecast
USD/CHF 4- Hour Chart

USD/CHF Price Forecast – Technical Levels

S3 0.9086

S2 0.9109

S1 0.9250

Pivot Point 0.9276

R1 0.9221

R2 0.9241

R3 0.9284

USD/CHF Price Forecast:  Symmetrical Triangle Breakout at $0.9189

The USD/CHF price forecast seems bullish at about the 0.9191 support level, and it’s likely to go after the resistance level of 0.9240. On the bullish side, the USD/CHF has violated the symmetrical triangle pattern. On the bullish side, the pair is likely to find immediate resistance around the 0.9240 level. Furthermore, the breakout of the 0.9240 level is expected to extend a buying friend until the next resistance level of 0.9268.

The USD/CHF pair is likely to gain immediate support around the 0.9191 level on the bearish side. Moreover, a bearish breakout of the 0.9191 level is likely to extend further selling trend until the next support level of the 0.9173 level.

In the 4-hours timeframe, the 50-day exponential moving average is providing immediate support at 0.9172. While the closing of candles above this level suggests a strong bullish trend in the currency pair. Stochastic RSI’s leading indicator suggests a solid bullish bias in the USD/CHF currency pair.

Therefore, Forex trading market participants may buy trades above the $0.911 level to target the $0.9240 and $0.9270 levels. Alternatively, traders can take a sell position below the $0.9275 level today. All the best!

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