GabiDahdouh

USDCHF Daily Analysis

Long
FX:USDCHF   U.S. Dollar / Swiss Franc
Hello everyone, as we all know the market action discounts everything :)

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During the Asian trading session on Thursday, the USD/CHF currency pair remained flat In the morning, after reporting gains overnight, the currency pair remained in a relatively narrow trading range with little movement. The USD/CHF exchange rate is currently at 0.9261, up just 0.001 percent since the start of trading.

Scenarios for the market :

Scenario 1 :

The market is showing Bullish signs all around so most likely we will be seeing a push to the first resistance located at 0.9287 if the Bulls were able to keep control then the price will push further hitting the resistance at 0.9311 or even 0.9346 where they might have a problem with breaking out that zone.

Scenario 2 :

After the market reaches the first resistance of 0.9287 we might see a strong push from the Bears to drop the market back to the first support at 0.9227 where most likely the Bulls will gather a lot of power to take control back and drive the market price back up.

Technical indicators show :

1) The market is above the 10 20 50 100 200 MA and EMA , But still below the 5 MA which could mean a very small drop before going up.
2) The MACD is above the 0 line which means the market is bullish , With a positive crossover between the MACD line and the Signal line.
3) The STOCH is in the high range showing Bullish signs, With a positive crossover between the %K (62.04) and %D (60.89)

Daily Support & Resistance points :
support Resistance
1) 0.9227 1) 0.9287
2) 0.9191 2) 0.9311
3) 0.9167 3) 0.9346

Fundamental point of view :

The US Federal Reserve kept its short-term key rates unchanged in the range of 0% to 0.25% on Wednesday and said a “moderation” in asset purchasing would happen for further economic progress. The Federal Open Market Committee (FOMC) signaled a reduction in its $120 billion monthly bond purchase this year. In addition to that, US Fed Chair Jerome Powell hinted that tapering could occur as soon as in November or end in mid-2022.

Furthermore, the FOMC economic projection painted a rosy picture about the economy as the Fed hiked its interest-rate outlook to 1% and 1.8% in 2023 and 2024 respectively. The economy is expected to expand by 3.8% and 2.5% in 2023 and 2024 as compared to the previous 3.3% and 2.4% projections respectively.

On the other hand, the Swiss franc pares its previous gains on improved risk sentiment. On the economic data side, Switzerland's Current Account expanded to CHF 10.51 on a quarterly basis as compared to CHF 3.21 billion. As for now, traders wait for the Swiss National Bank (SNB) interest rate decision, US Initial Jobless Claims, and Markit manufacturing Purchasing Managers Index( PMI) to gain fresh trading impetus. According to Fxstreet.

This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!

Thank you for reading.