USD/CHF Technical Analysis. The USD/CHF pair has been on a clear upward trend since the middle of last week, supported by the strength of the dollar in global markets and rising US bond yields. The price has succeeded in breaking through important resistance levels, enhancing the chances of continued upward movement during the current US session, especially as investors await inflation data.
USD/CHF Technical Analysis: Technical Overview:
The pair is currently trading at 0.8310, after successful attempts to consolidate above the 0.8298 support level. The pair is moving within a small ascending channel that began on May 7, with higher highs and lows, reflecting a gradual improvement in technical momentum. The price is currently stable above all major moving averages on the H1 timeframe.
Technical Indicator Analysis:
MACD: In the positive zone and showing stable bar widths, supporting the continued upward trend.
Stochastic: Fluctuating in a neutral range after retreating from overbought conditions, suggesting some sideways volatility before resuming the move.
Moving Averages: The price is stable above the 20, 50, and 100 moving averages, indicating a strong and stable uptrend.
Expected Scenarios
Negative Scenario:
If the support at 0.8310 is broken, the pair may witness a downward correction towards 0.8287, and a break above it would open the way for a decline towards 0.8260 in the intraday.
Bullish Scenario:
If the price continues to consolidate above 0.8330, a target of 0.8365 and then 0.8389 is expected during the session. A break above 0.8389 could open the door to the 0.8420 level.
Trading strategies based on Buy/Sell levels
| In case of buying | in case of selling | USDCHF |
| 0.84574 | 0. 84305 | Entry point |
| First resistance: 0.84857 | First support: 0.84006 | Target Point 1 (TP1) |
| Second resistance 0.85157 | Second support 0.83706 | Target Point 2 (TP2) |
| 0.84305 | 0.84574 | Stop Loss (SL) |
The USD/CHF pair continues to show signs of strength after breaking through important resistance levels, supported by good buying momentum and technical stability above the moving averages. As long as the pair maintains trading above 0.8310, the bullish outlook remains intact, with a chance of reaching 0.8365 and then 0.8389. With the release of US inflation data approaching, it is advisable to closely monitor the dollar’s movement for confirmation of the trend or a sudden reversal.
Impactful Economic News:
United States:
- o Producer Price Index (PPI) – This is the strongest indicator today and will directly impact the movement of the dollar and the pair.
- o Statements from Federal Reserve officials may influence interest rate expectations.
Switzerland:
o No impactful data is due today, making the pair more sensitive to movements in the US dollar.
