USD/CHF Price Forecast: Tests 20-day SMA as Franc outperforms

The USD/CHF edges lower during the North American session down 0.20%, even though the Greenback post solid gains against most of its peers, except the Swiss Franc. At the time of writing, the pair trades at 0.7733, and tests key support at the 20-day Simple Moving Average (SMA) at 0.7723.

USD/CHF Price Forecast: Technical outlook

The technical picture shows the USD/CHF peaked at around 0.7768, after reclaiming the 20-day SMA three days before, an indication that buyers are stepping in. Although bullish momentum has faded according to the Relative Strength Index (RSI), if sellers fail to drive the exchange rate below the 20-day SMA, buyers could remain hopeful of higher prices.

If USD/CHF climbs past 0.7750, this clears the stage to challenge 0.7800. once cleared, the next stop will be the 50-day SMA at 0.7845, with the next key resistance seen at the 100-day SMA at 0.7911.

Conversely, if the pair extend its losses past the 20-day SMA and 0.7700, the February 10 swing low of 0.7629 would be in play.

USD/CHF Price Chart – Daily