- USD/CHF got a bid ahead of the FOMC meeting with mixed sentiment.
- From a medium-term perspective, USD/CHF has a bullish bias; could retest 0.9900.
- USD/CHF Price Analysis: A bearish pennant has emerged which, once broken, would see the pair drop towards 0.9580.
The USD/CHF is rebounding from last week’s low and 100-day moving average (DMA) at 0.9600, and up on mixed sentiment, with US equities fluctuating, as traders brace for policy decision Federal Reserve monetary policy on Wednesday. At the time of writing, USD/CHF is trading at 0.9652, with a slight gain of 0.37%.
USD/CHF Price Analysis: Technical Outlook
From a daily chart point of view, USD/CHF continues to have a bullish bias as buyers stepped in around 0.9600 and pushed the exchange rate towards Monday’s daily high of 0.9660. However, since June, USD/CHF has been range bound within the 0.9500-0.9900 zone, so a break above the 50-DMA at 0.9698 would put a move to the 18 Jul high in play. at 0.9789 before challenging 0.9900.
USD/CHF 1 hour chart
USD/CHF remains neutrally biased to the downside, with hourly SMAs above the exchange rate. The oscillators, although showing positive readings, the RSI is about to cross below its 7-period SMA, which would open the door for further losses. USD/CHF traders should note that a bearish pennant has formed, which once broken, would pave the way for a drop below 0.9600.
If this scenario is about to play out, the first support for USD/CHF would be the daily pivot at 0.9640. A breakout of the latter would immediately expose the trend line of a bearish pennant. Once broken, the next support would be 0.9600. A decisive break would expose the bearish pennant target around the 0.9575-80 zone.
|Last Price Today||0.9651|
|Today’s Daily Change||0.0038|
|Today’s Daily Change %||0.40|
|Today’s Daily Opening||0.9613|
|20 Daily SMA||0.9693|
|50 Daily SMA||0.9711|
|100 Daily SMA||0.9601|
|200 Daily SMA||0.9404|
|Previous Daily High||0.9704|
|Previous Daily Minimum||0.96|
|Previous Maximum Weekly||0.979|
|Previous Weekly Minimum||0.96|
|Monthly Prior Maximum||1,005|
|Previous Monthly Minimum||0.9495|
|Daily Fibonacci 38.2%||0.964|
|Daily Fibonacci 61.8%||0.9664|
|Daily Pivot Point S1||0.9574|
|Daily Pivot Point S2||0.9534|
|Daily Pivot Point S3||0.9469|
|Daily Pivot Point R1||0.9678|
|Daily Pivot Point R2||0.9743|
|Daily Pivot Point R3||0.9783|
Source: Fx Street