USD/CHF Technical Analysis

From the daily chart below, we can see that the price was trading in a bearish channel. The big decline since November was the result of the first deviation from expectations in the US Consumer Price Index report, leading the market to expect inflation to peak and moderate later. At $ , , record long positions were largely undone as markets also priced in a less dovish Fed and an earlier-than-expected pause and even cuts. Last Friday, those expectations took a hit as the labor market continued to show incredible strength as the NFP report surprised hugely and the ISM Services PMI jumped back into growth territory. Markets are now concerned that while inflation may be slowing, the Fed may need to do even more to return to its 2% inflation target. This revaluation could push the pair higher, so the descending channel is worth watching as the price has already diverged against the MACD for months, a sign of weakening selling momentum. The target for the acceleration side would be 0.96. , USD/CHF , On the -hour chart below, we see resistance at 0.9287, which the price needs to break to confirm a channel break and start a major uptrend. Markets await the US CPI report next week, so the market could be volatile in the meantime. If the price breaks the 0.9160 support, sellers will have more confidence to target the next support at 0.9061. The following changes will be decided next week. USD/CHF From the 1-hour chart below, we can see that the price has retraced to the 50% Fibonacci level before the bounce. It is currently at the 38.2% level and previous momentum support. The blue short-term moving average is also higher than the red long-term moving average, indicating bullish momentum. The red moving average also acts as additional support for buyers. From here we can see some buying pressure at least until the next resistance at 0.9287.

Steve Walker

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