- USD/CHF bounced around the 0.8900 zone and hit a high of 0.8935, with gains of 0.15%.
- The CHF was the best performing currency on Thursday, with the pair losing around 0.85%.
- The economic calendar has nothing relevant to offer, and attention shifts to the Middle East.
On Friday, the sellers of the USD/CHF They appeared to consolidate their gains, and the pair found support at the 100-day SMA at 0.8900, rising to a high near 0.8935 and then settling at 0.8915.
On the dollar side, the US currency is struggling to gain momentum and is trading lower against its rivals. That said, as all eyes will be on the Middle East in the Israel-Palestine conflict, the USD could find demand in safe haven flows. For next week, the highlight will be the US S&P Manufacturing PMI for October, where investors will get a clearer picture of the US economy. This week, September Industrial Production and retail sales came in above expectations, and the Federal Reserve’s (Fed) Beige Book report described the economy as “stable.”
Additionally, Chairman Powell highlighted on Thursday that rising bond yields, which are contributing to tightening financial conditions, will be factored into upcoming decisions. However, it still opened the door to further tightening, and the bank will proceed “with caution.”
USD/CHF Levels to watch
Evaluating the daily chart, a neutral to bearish outlook is observed, with the balance beginning to tip in favor of the bears. However, traders should not rule out a healthy technical correction.
The Relative Strength Index (RSI) maintains a negative slope in bearish territory, while the Moving Average Convergence Histogram (MACD) displays rising red bars. These indicators are close to the oversold territory, favoring the case of an upward correction in the coming sessions. Furthermore, the pair is above the 20-day and 100-day SMA and below the 200-day SMA, suggesting that the bears still have work to do to confirm a bearish bias.
Support levels: 0.8900 (100-day SMA), 0.8870, 0.8850.
Resistance Levels: 0.890, 0.9015 (200-day SMA), 0.9040.
USD/CHF Daily Chart
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
