USD/CHF Price Forecast: Rejected At 200-Day SMA, Drops Towards 0.7900

The USD/CHF trades more softly during the North American session despite the Swiss National Bank (SNB)'s efforts to intervene verbally in the forex markets to depreciate the Swiss Franc. Broad US Dollar weakness pushed the major down 0.31% to 0.7906.

USD/CHF Price Forecast: Technical outlook

The technical picture shows that USD/CHF buyers emerged at around 0.7830, pushing the pair higher amid US Dollar strength on Wednesday. The pair hit an eight-week high at 0.7957, slightly above the 200-day Simple Moving Average (SMA) at 0.7951, which increased the chances for further upside.

Since then, the USD/CHF has retreated towards the 0.79 level, but short-term momentum seems poised for further gains, as indicated by the Relative Strength Index (RSI).

Conversely, if USD/CHF falls below the 100-day SMA at 0.7897, it opens the path to test the 50-day SMA at 0.7800. On further weakness, the next area of interest would be the March 6 daily low of 0.7750.