USDCHF Technical Analysis | Forexlive
On the daily USDCHF chart below, we
can see that the Swiss Franc is comfortably in charge as the pair keeps
drifting lower on expectations that the Fed may be near the end of its
tightening cycle and will cut rates soon after. We saw a bit of a pullback last
week as the US
PMIs surprised to the upside and gave the dollar a boost, but this week the
data was against the greenback.
The US
ISM Manufacturing PMI missed expectations and the sub-indexes like
employment, prices paid and new orders all contracted by a notable margin.
Yesterday, the US
Job Openings missed expectations and added to the expectations
that the recession is near and we will get rate cuts earlier than expected.
On the 4 hour chart below, we can
see that the price is currently breaking below the 2023 low set in February and
it’s now looking for a new lower low. The sellers have been clearly in control
and now will look at today’s US ISM Services PMI report to see whether they can
add more to the selling momentum or wait a bit. If we get a beat, it’s more
likely that we will see a pullback, while a miss should increase the selling
pressure.
On the 1 hour chart below, we can
see that in case the price pulls back, a good spot to lean on for the sellers
should be the trendline and the 38.2% Fibonacci
retracement level. It looks unlikely that we’ll get there
though unless the data beats expectations. The buyers will need a break above
the trendline and better yet above the 0.9118 resistance to gain the conviction and
target the 0.92 handle. The sellers, on the other hand, are likely to step in
both at the trendline and the 0.9118 resistance.