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USD/CHF Price Preparing for New Three-Year High Above 1.0070
The dollar bulls have been supported by a strengthening risk-aversion impulse. As yields surge, the DXY has surpassed the immediate barrier of 113.00. Advancing 20- and 50-day exponential moving averages augment the upside filters.
The USD/CHF pair has surpassed its immediate barrier at 1.0050 during the Tokyo session and is preparing to target a three-year high achieved on October 13 at 1.0074. The greenback bulls have been bolstered by a gloomy market sentiment brought on by late selling in the S&P 500 and rising rates.
The 10-year US Treasury yields reached 4.23 percent as a result of surging wagers on an anticipated Federal Reserve rate hike announcement (Fed). At press time, the US dollar index (DXY) has surpassed the crucial threshold of 113.00.
On a daily scale, the asset is trading in a tight range between 1.0048 and 1.0074 towards the supply zone. The 20-period and 50-period Exponential Moving Averages (EMAs), at 0.9931 and 0.9823, respectively, are vertically aligned to the north, which reinforces the upward filters.
Likewise, the Relative Strength Index (RSI) (14) is looking for a shift into the bullish region of 60.00-80.00. The occurrence of a similar event will further bolster the greenback bulls.
Should the asset surpass its October 13 high of 1.0074, it will reach a new three-year high. The major trend is toward the round-number resistance level of 1.0100, followed by the 15 April 2019 high of 1.0160.
Alternatively, the Swiss franc bulls may regain power if the asset breaches the 0.9742 low from September 29. This would push the pair toward the high of 0.9695 on September 19 and the low of 0.9620 on September 22.
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