USDCHF gains momentum amid improved US dollar sentiment

The USDCHF USD/CHF The USD/CHF is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Swiss franc of Switzerland (code CHF). The pair’s exchange rate indicates how many Swiss francs are needed in order to purchase one US dollar. For example, when the USD/CHF is trading at 1.2500, it means 1 US dollar is equivalent to 1.25 Swiss francs. The US Dollar (USD) is the world’s most traded currency, whilst the Swiss franc (CHF) is the world’s sixth most traded currency, The USD/CHF is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Swiss franc of Switzerland (code CHF). The pair’s exchange rate indicates how many Swiss francs are needed in order to purchase one US dollar. For example, when the USD/CHF is trading at 1.2500, it means 1 US dollar is equivalent to 1.25 Swiss francs. The US Dollar (USD) is the world’s most traded currency, whilst the Swiss franc (CHF) is the world’s sixth most traded currency, Read this Term is experiencing an upward trend as the US dollar US Dollar The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel Read this Term strengthens. The currency pair has risen above its 100-hour moving average at 0.8953. Last Tuesday, the price fell below this moving average near 0.9059 and continued to decline, reaching a low of 0.8859 on Thursday (-200 pips in 2-3 days). On Friday, the low price halted at 0.8866 before rebounding to close at 0.8937. The Friday high nearly touched the 38.2% retracement of the week's trading range, but found willing sellers.

The declining 100-hour moving average and the rising price on Friday, allowed for a shift of the short-term bullish bias after breaking above both the 100 hour moving average and the 38.2% retracement today. However, the USDCHF has been on a longer-term downtrend (the chart above is down from left to right), so more work is needed to solidify the bullish sentiment.

To boost buyer confidence, the currency pair needs to surpass the 50% retracement of last week's decline at 0.8989 and the descending 200-hour moving average, currently at 0.9006. Over the past month, the USDCHF has occasionally risen above its 200-hour moving average, with the most recent occurrence on April 10. However, these gains were short-lived, and the price consistently fell back with downward momentum.