Thursday, October 6, 2022

USD/CHF Price Analysis: Hovering around the top of the 0.9600-0.9660 range, eyeing 0.9700

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USD/CHF bounces from weekly lows, set to finish the week with gains of 0.73%.
From a daily chart perspective, the USD/CHF has nowhere to go; it would likely remain in consolidation.
Near-term, a symmetrical triangle in the USD/CHF 4-hour chart targets 0.9767.

The USD/CHF stages a comeback after hitting weekly lows around 0.9577 earlier in the day and is about to erase Thursday’s losses as the USD/CHF aims towards the 100-DMA, following hawkish remarks by the US Federal Reserve Chief, Jerome Powell. The USD/CHF is trading at 0.9659, up by almost 0.20%.

USD/CHF Price Analysis: Technical outlook

Consolidation in the daily chart will keep the USD/CHF trading within the 0.9600-0.9690 range, as shown by this week’s price action. Worth noting that the support/resistance levels are the 100 and 50-day EMAs, each at 0.9657 and 0.9614, respectively. Therefore, unless the exchange rate decisively breaks above/below the range, the USD/CHF might remain subdued.

Short term, the USD/CHF 4-hour scale depicts the formation of a symmetrical triangle on an uptrend, which was “false” broken to the downside, on the remarks of Fed’s Powell, though it closed within the top-bottom of the trendlines. Additionally, the USD/CHF bias is neutral-to-upwards biased, confirmed by the moving averages residing below the spot price, while the Relative Strength Index (RSI) turned the coroner and began to aim higher in positive territory.

Hence, the USD/CHF first resistance would be the top-trendline of the symmetrical triangle. Break above will expose the confluence of the R2 pivot point and the 0.9700 figure. Once cleared, the next supply zone would be the height of the symmetrical triangle, which targets 0.9767, followed by the psychological 0.9800 mark.

USD/CHF Key Technical Levels

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