USDCHF Technical Analysis | Forexlive
On the daily chart below for
USDCHF, we can see that the price keeps trending downwards as the market sees
the end of the Fed’s tightening cycle at the next meeting, inflation falling
back to target and a recession on the horizon.
The major trendline and the moving
averages keep defining this downtrend and the sellers keep entering the market
with conviction at every pullback. As long as the US data keeps deteriorating,
we are likely to see new lower lows in the pair going forward.
On the 4 hour chart below, we can
see that the last pullback rejected the 50% Fibonacci
retracement level and the resistance at the 0.90 handle before
falling back down to the 0.8858 low. At the moment the price is bouncing again
from the low with the buyers likely targeting the trendline. The sellers will
lean on that trendline again if the price gets there.
On the 1 hour chart below, we can
see that the price has been trading cleanly between swing levels. The buyers
will need to break above the support turned resistance at 0.8920 to ultimately
push the price towards the trendline.
The sellers, on the other hand,
will keep on leaning against the 0.8920 resistance to target a break below the
0.8890 support and push the price to the 0.8858 low and beyond. The US Jobless Claims tomorrow will be a market moving
event and a miss is likely to cause another depreciation in the pair while a
beat should extend the correction higher.