USD/CHF Price Analysis: Break of a bullish flag target 0.9450

• The USD/CHF keeps trimming last week’s losses, up 0.81% in the week.
• The break of a bullish flag on an H4 chart opened the door for further gains.
• USD/CHF Price Forecast: The pair is upward biased, as depicted by the daily chart.

The USD/CHF climbs for four consecutive days amid a gloomy market mood North American session, blamed on hawkish Fed expectations, high US Treasury yields, and the release of the Fed’s March meeting minutes. At the time of writing, the USD/CHF is trading at 0.9324.

European and US equities reflect the aforementioned dismal sentiment. At the same time, the US Dollar Index, a gauge of the greenback’s value against a basket of peers, rises 0.01% and sits at 99.491. The 10-year US Treasury yield is rising four basis points, up at 2.596%, normalizing the yield curve that had inverted over the last few days.

Overnight the USD/CHF braced to February 10 daily high at 0.9296, and once cleared, the USD/CHF rallied and reached a fresh weekly high at 0.9349 but retreated to current levels as market players waited for the release of the FOMC March meeting minutes.

USD/CHF Price Forecast: Technical outlook

The USD/CHF uptrend remains intact. The daily moving averages (DMAs) reside well below the spot price, though almost horizontally, but sitting beneath the 0.9263 50-DMA.

The 4-hour chart shows that a bullish flag , drawn since March 14 highs around 0.9460, was broken, meaning that the USD/CHF could aim higher, but as the release of the Fed’s minutes loom, the pair remains subdued.

That said, the USD/CHF first resistance would be 0.9349. Breach of the latter would expose March 27 and 29 highs area around the 0.9370-80 region, which would expose the 0.9400 mark once broken.

Technical levels to watch