Fundamental Overview
The USD remains strong due to positive economic data, such as the recent US PMIs and Consumer Confidence report. This has kept interest rate expectations stable with potential cuts by the end of the year, but also supports risk sentiment and could weaken the greenback.
On the other hand, the CHF weakened after the SNB cut interest rates by 25 bps to 1.25%. While the market expected this cut, the central bank also lowered its inflation forecasts, further weakening the Swiss Franc. The SNB has mentioned readiness to intervene in the FX market if needed.
USDCHF Technical Analysis – Daily Timeframe
On the daily chart, USDCHF is nearing a key resistance at 0.90. Sellers may step in here with a defined risk above the level, while buyers will look for a breakout to increase bullish bets.
USDCHF Technical Analysis – 4 hour Timeframe
The 50% Fibonacci retracement level adds confluence to the resistance level on the 4-hour chart. An upside breakout could target the trendline at 0.9050, where sellers may push for a drop into new lows.
USDCHF Technical Analysis – 1 hour Timeframe
On the 1-hour chart, a pullback may find support around 0.8945 for buyers to position for a breakout. The sellers will aim for a price break lower to increase bearish bets. The red lines indicate the average daily range for today.
Upcoming Catalysts
Today, we await US Jobless Claims figures, followed by the US PCE report tomorrow to conclude the week.