• The USD/CHF trims Monday’s losses, so far 0.01% up in the week.
• US President Joe Biden condemned Russia’s actions and imposed sanctions.
• USD/CHF Technical Outlook: A tweezers-bottom could exacerbate a move towards 0.9250.

The USD/CHF is recovering as the Wall Street session winds down following US President Joe Biden's speech in which he addressed the conflict in Ukraine and imposed some sanctions on Russia and the two separatist states. At press time, the USD/CHF is trading at 0.9215.

US President Joe Biden condemned Russia’s actions and imposed sanctions

Two hours before Wall Street closed, US President Biden hit the stage. He condemned Russian President Putin’s latest actions and announced new sanctions to Russian peers in his speech. He said that Russia made a “flagrant violation of international law and demands a firm response.” Biden added that Russia added blood supplies to the border and noted that “you don’t need blood unless you’re preparing a war.

US Sanctions

• Halted the Nord stream 2 in conjunction with Germany.
• Sanctions to Russia’s “Military bank” and VEB Bank.

Market’s reaction

The abovementioned sanctions improved the market sentiment for a while, but in the end, US equity indices edged lower, finishing Tuesday’s session in the red.

USD/CHF Price Forecast: Technical outlook

Putting aside geopolitical news, the USD/CHF remained subdued on Tuesday during the Asian session. However, as European traders got to their desks, the USD/CHF jumped on a mean reversion move, paring Monday’s losses.

USD/CHF Tuesday’s price action formed a “tweezers-bottom” candle pattern that denotes an upward bias. Furthermore, the USD/CHF daily moving averages (DMAs) are below the spot price, another signal of buying pressure on the pair. Nevertheless, to further cement that bias, USD/CHF bulls would need a daily close above February 21 close at 0.9158.

In that outcome, USD/CHF’s first resistance would be February 10 daily high at 0.9296. Once that supply zone is cleared, the next ceiling would be January 31 daily high at 0.9343, followed by last year’s November 24 daily high at 0.9373.