USDCHF Technical Analysis

<p>Last week we heard from several
central bank speakers. The prevailing sentiment remains the same: wait for
further data to gauge the extent of future tightening needed. Although the
majority of the FOMC members expect two additional rate hikes this year, they keep
on highlighting that these decisions are subject to the data. The economic data
we had up to now inclines them towards a rate hike, as the <a href="https://www.forexlive.com/news/us-may-housing-starts-1631m-vs-1400m-expected-20230620/">housing market</a> data surprised to the upside, the <a href="https://www.forexlive.com/news/initial-jobless-claims-264k-versus-260k-estimate-20230622/">US Jobless Claims</a> remained stable, the <a href="https://www.forexlive.com/news/us-june-flash-sp-global-services-pmi-541-vs-540-expected-20230623/">US Services PMI</a> beat expectations and yesterday the
<a href="https://www.forexlive.com/news/us-june-consumer-confidence-1097-vs-1040-expected-20230627/">US Consumer Confidence</a> jumped higher across the board.</p><p>The upcoming NFP and CPI
reports will certainly have a significant role in shaping future expectations,
but if we continue to see such positive data, it is likely that the Fed may
indeed be forced to keep hiking beyond the market's current expectation of just
one hike in July. Conversely, the <a href="https://www.forexlive.com/centralbank/snb-raises-policy-rate-by-25-bps-to-175-as-expected-20230622/">SNB</a> hiked again by 25 bps last week and even
though they are much closer to their inflation target, they kept their hawkish
tone as they want to avoid any second or third round effects.</p><p>USDCHF Technical Analysis –
Daily Timeframe</p><p>On the daily chart, we can see that USDCHF couldn’t
break above the 0.9122 resistance and
since then fell almost all the way back to the 0.8858 support. The <a href="https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/">moving averages</a> have
again switched to the downside which is a signal that the trend has changed,
and we may see new lows going forward. The near-term target should be the
0.8858 support, but a break below it would open the door for the 0.8765 low set
in 2021.</p><p>USDCHF Technical Analysis –
4 hour Timeframe</p><p>On the 4 hour chart, we can see that the price has
had a hard time trying to break above the 0.90 resistance and below the 0.89
support as well. This has created a range between the two levels and the price
action became choppy. In such cases, it’s better to stay out of the market and
wait for a clear breakout supported by a fundamental catalyst. </p><p>USDCHF Technical Analysis –
1 hour Timeframe</p><p>On the 1 hour chart, we can see more
closely the range between 0.89 and 0.90. A break to the upside should see the
buyers piling in targeting a rally into the 0.91 resistance. On the other hand,
a break to the downside should see the sellers coming in to target a fall into
the 0.8858 support, eventually looking for a breakout. </p><p>The <a href="https://www.forexlive.com/EconomicCalendar">data calendar</a>
for this week is relatively empty, with only the US Jobless Claims scheduled
for Thursday and the US PCE for Friday. Nevertheless, we will hear from several
central bank members throughout the week. </p>

This article was written by FL Contributors at www.forexlive.com.