Key Highlights
- USD/CHF declined heavily below the 0.8720 support.
- A short-term bearish trend line is forming with resistance near 0.8605 on the 4-hour chart.
- EUR/USD climbed toward 1.1280 before the bears appeared.
- Gold price accelerated gains above the $1,965 resistance.
USD/CHF Technical Analysis
The US Dollar started a major decline from well above 0.8950 against the Swiss Franc. USD/CHF declined below the 0.8820 support to move into a bearish zone.
Looking at the 4-hour chart, the pair accelerated lower below the 0.8720 support, the 200 simple moving average (green, 4 hours), and the 100 simple moving average (red, 4 hours).
The pair even declined below 0.8600 and tested 0.8550. The pair is now showing a lot of bearish signs, with immediate resistance at 0.8600. There is also a short-term bearish trend line forming with resistance near 0.8605 on the same chart.
The next major resistance is near 0.8660. If there is a move above the 0.8660 resistance, the pair could rise toward 0.8720. Any more gains might send the pair toward the 0.8800 resistance zone in the near term.
Immediate support is near the 0.8550 level. The next major support is seen near the 0.8520 level, below which there could be a drop to 0.8450. Any more losses might send the pair toward the 0.8320 support zone.
Looking at Gold price, the bulls seem to be in control and they could aim a fresh move toward the $2,000 resistance zone.
Economic Releases
- UK Consumer Price Index for June 2023 (YoY) – Forecast +8.2%, versus +8.7% previous.
- UK Core Consumer Price Index for June 2023 (YoY) – Forecast +7.1%, versus +7.1% previous.
- Euro Zone CPI for June 2023 (YoY) – Forecast +5.5%, versus +5.5% previous.
- Euro Zone CPI for June 2023 (MoM) – Forecast +0.3%, versus +0.3% previous.
