Started by forex4you, Sep 20, 2023, 05:27 pm
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USDCHF Technical Analysis -Daily Timeframe
On the daily chart, we can see that USDCHF has beenin a strong uptrend since August as the US data remined strong while theSwitzerland data kept on surprising to the downside. The Switzerland inflationrate is also within the SNB's target band, so the market has likely positionedalready for a pause at the upcoming meeting. Looking ahead, the pair seems tobe targeting the 0.9122 resistance and ifwe get a bigger pullback, the buyers are likely to lean on the upward trendline where wecan also find the confluence with thered 21 moving average.
USDCHF Technical Analysis -4-hour Timeframe
On the 4-hour chart, we can see that the pairrecently broke out of a minor resistance, retested it, and climbed up further.The bullish momentum though is clearly weaker, and we can also see that fromthe divergence with theMACD which isusually a sign of waning momentum often followed by pullbacks or reversals. Inthis case, if the price breaks below the recent resistance turned support aroundthe 0.8945 level, we can expect a fall into the upward trendline where thebuyers will step in to target a new high. The sellers, on the other hand, willpile in both on a break below the 0.8945 support and on an eventual break belowthe upward trendline.
USDCHF Technical Analysis -1-hour Timeframe
On the 1-hour chart, we can see moreclosely the support zone around the 0.8945 level. From a risk managementperspective, the buyers would be better off to wait for a pullback into thesupport and pile in with a defined risk below it to target a new high. Thesellers, on the other hand, should wait for a break below the support before gettingthe confirmation of a bigger correction.
This week has just a couple of important economicreleases with the FOMC and SNB rate decisions being the highlights. Today, theFed is expected to keep rates unchanged, and the markets will focus more on theDot Plot and Fed Chair Powell's press conference, although he's likely torepeat that they remain data dependent. Tomorrow, the SNB is expected to keeprates unchanged although there's also a good chance that they raise by 25 bpsagain, while later in the day we will see the latest US Jobless Claims report.On Friday we conclude the week with the US PMIs data.
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