Key Highlights
- USD/CHF started a consolidation phase above the 0.8755 level.
- A connecting bearish trend line is forming with resistance at 0.8825 on the 4-hour chart.
- EUR/USD started a minor pullback from the 1.0950 resistance zone.
- Gold remained elevated above the $3,030 zone.
USD/CHF Technical Analysis
The US Dollar declined heavily below the 0.8850 level against the Swiss Franc. USD/CHF even spiked toward 0.8750 before it found some support.
Looking at the 4-hour chart, the pair settled below the 0.8825 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair started a consolidation phase and might face many hurdles.
On the upside, the pair is facing resistance near the 0.8825 level. There is also a connecting bearish trend line forming with resistance at 0.8825 on the same chart.
The next major resistance is near the 0.8850 level. The main resistance is now forming near the 0.8880 zone. A close above the 0.8880 level could set the tone for another increase. In the stated case, the pair could even clear the 0.8950 resistance.
On the downside, immediate support sits near the 0.8755 level. The next key support sits near the 0.8720 level. Any more losses could send the pair toward the 0.8700 level. The main support could be 0.8680.
Looking at EUR/USD, the pair struggled to continue higher and might see a pullback toward the 1.0820 support zone.
Upcoming Economic Events:
- BoE Interest Rate Decision – Forecast 4.5%, versus 4.5% previous.
- US Initial Jobless Claims – Forecast 224K, versus 220K previous.
