USDCHF Technical Analysis | Forexlive

USD

• The Fed left interest rates unchanged as
  expected at the last meeting and dropped the tightening bias in the statement.
• The US PCE came
  in line with expectations.
• The US Jobless Claims missed
  expectations although the data is still in the recent ranges.
• The latest US ISM
  Manufacturing PMI missed expectations by a big margin
  remaining in contraction with the US ISM Services
  PMI
  following suit but holding on in expansion.
• The US Consumer
  Confidence missed expectations across the board.
• The market expects the first rate cut in June.

CHF

• The SNB kept interest rates unchanged at 1.75% at the last meeting stating
  that they will adjust policy if necessary to ensure that inflation remains in
  the target range.
• The latest Switzerland CPI beat expectations slightly although
  the Core measure eased further more.
• The Unemployment Rate remains steady at cycle lows.
• The Manufacturing PMI rose slightly although it remains
  in contraction, while the Services PMI hold on in expansion.
• The market expects the SNB to cut
  rates in March.

USDCHF Technical Analysis –
Daily Timeframe

On the daily chart, we can see that USDCHF has been
consolidating below the 0.8886 high lately maintaining a bullish tilt. Last
Friday, the price got rejected from the high following a weaker than expected
US ISM Manufacturing PMI, but the buyers rushed to buy the dip around the red
21 moving average to
position for a breakout to the upside. In case this consolidation goes on, we
can expect the buyers to step in more aggressively around the major upward trendline.

USDCHF Technical Analysis –
4-hour Timeframe

On the 4-hour
chart, we can see that the price recently bounced around the previous resistance turned support at
0.8820. This is where we can expect the buyers to step in if the price falls
back again into it with a defined risk below the level to target a break above
the high. The sellers, on the other hand, will want to see the price breaking
lower to target a drop into the major trendline.

USDCHF Technical Analysis –
1-hour Timeframe

On the 1-hour chart, we can see more
closely the recent rangebound price action. We can see that the price yesterday
bounced near the support and made a new higher high on this timeframe.
Aggressive buyers might want to step in at the 0.8841 swing level with a
defined risk below it to position for a break above the high with a great risk
to reward setup. The sellers, on the other hand, will want to see the price
breaking lower to invalidate the setup and position for a break below the
0.8820 support.

Upcoming Events

Today we have the US ADP, the US Job Openings and
the Fed Chair Powell speaking. Tomorrow, we will see the Switzerland
Unemployment Rate and later in the day, the US Jobless Claims figures. Finally,
on Friday, we conclude the week with the US NFP report.