USD/CHF Technical Analysis | Forexlive
On the daily chart below, we can
see that the big selloff caused by the Silicon Valley Bank failure and the
fears of another banking crisis, brought the price back to the support at 0.9059. The move got there
too fast though and the price was overextended as signalled by the distance
between the price and the blue short period moving
average.
In fact, we started to see a
pullback that intensified soon after as Credit Suisse got again in trouble. The
sellers though, leant onto the red long period moving average as Credit Suisse
got bought by UBS, and the price started to range around the 0.9287 level. The
focus now is on the FOMC
decision today and the SNB on Thursday.
On the 4 hour chart below, we can
see that the price got stuck in a range recently around the 0.9287 level but we
got a breakout yesterday. The momentum is in favour of the sellers as depicted
by the moving averages crossed to the downside.
The sellers are now in control,
but everything will come down to the FOMC today and it’s likely that we will
see the price coming back into the range in case the Fed sounds hawkish. On the
other hand, a dovish outcome would give the sellers more conviction to continue
the downtrend.
On the 1 hour chart below, we can
see that after breaking out of the range, the price retested the support now turned resistance and found sellers. Now, we have
a minor support at 0.9209 and we should see the sellers extending the move
lower in case the support gives way. Watch out for the FOMC today!