USD/CHF Price Analysis: Probing the 200-DMA as market mood dampens due to high tensions in Ukraine

• The USD/CHF leans towards 0.9175, the 200-DMA sparked by a swing in the market mood.
• USD/CHF Technical Outlook: Neutral-downwards after falling under 0.9200.

The USD/CHF retreats from a wall of resistance levels around the 0.9200 mark amid increasing tensions in Ukraine in the last hour, spurring a swing in market players’ sentiment. At the time of writing, the USD/CHF is trading at 0.9176.

Ukraine – Russia crisis escalates

Summarizing what happened in the last hour, around 15:39 GMT, explosions were heard at the Donetsk airport, according to Sputnik. Meanwhile, Interfax reported that Ukrainian government websites are reportedly under cyberattack, including Ukrainian banks.

That said, during the overnight session, the USD/CHF retreated from daily highs above the 0.9218 area, near the 200-hour simple moving average (SMA) at 0.9220 before the European session. The free-fall began once European traders got to their desks, pushing the pair towards the 200-day moving average (DMA) at 0.9175.

USD/CHF Price Forecast: Technical outlook

USD/CHF is neutral biased amid failure to hold the 0.9200 mark. The new trading range would be 0.9150-0.9200, as witnessed in the last three days, except for Wednesday, reaching a daily low at the abovementioned 200-DMA.

The USD/CHF path of least resistance in the short term is downwards. Breach of the 200-DMA would expose February 21 daily low at 0.9150. Once cleared, the next stop would be January 21 daily low at 0.9107, followed by the April 2021 lows at 0.9018.

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