- USD/CHF is trading in a narrow range with slight gains above 0.8800.
- The pair is holding above the 50-hour and 100-hour EMAs, indicating potential support.
- RSI and MACD are in bullish territory, suggesting buying pressure.
- Immediate resistance at 0.8830, initial support at 0.8770.
Heading into Thursday’s early European session, the USD/CHF pair is trading essentially unchanged with little gains above the 0.8800 level. Since July 27, the pair has been trading in a consolidating phase.
1️⃣ #Bitcoin price levels are reaching their lowest since June 21 as BTC/USD wicked to $28,300.
👉 This downside came after the United States Federal Reserve published the minutes of its July meeting to discuss future monetary policy. pic.twitter.com/vLZr31UNFg
— Budhil Vyas (@BudhilVyas) August 17, 2023
That said, the upbeat US data and the possibility of a further tightening cycle from the Federal Reserve (Fed) are the main drivers of the US Dollar’s (USD) strength and boost USD/CHF higher. The Federal Open Market Committee (FOMC) Minutes emphasised that inflation remained unacceptably high while Fed officials opened the door for additional tightening of monetary policy to bring inflation to the longer-run target.
Technically, the USD/CHF pair is holding above the 50- and 100-hour Exponential Moving Averages (EMAs) with an upward slope, indicating that the upward route presents the least amount of resistance for the pair. Additionally, the Moving Average Convergence/Divergence (MACD) maintains above positive zone and the Relative Strength Index (RSI) remains above 50, supporting the buyers for the time being.
Asian shares sank to nine-month lows on Thursday, while the dollar was at a two-month peak as fears over China’s sluggish economic recovery and concerns that the Federal Reserve may still raise interest rates rattled investors. https://t.co/dIHpq7Rqg4
— City A.M. (@CityAM) August 17, 2023
Technically, the USD/CHF pair is holding above the 50- and 100-hour Exponential Moving Averages (EMAs) with an upward slope, indicating that the upward route presents the least amount of resistance for the pair. Additionally, the Moving Average Convergence/Divergence (MACD) maintains above positive zone and the Relative Strength Index (RSI) remains above 50, supporting the buyers for the time being.
$ES_F & $NQ_F Daily views of Mthly/Weekly shown in my prior posts below. Price testing bottom of Grey Support Zone. If it fails instead of bouncing, then $ES_F & $NQ_F GAP fills below are likely next. MACD O/S.. so caution if Short. $SPY $QQQ https://t.co/T06va8KxXL pic.twitter.com/1g6g7xCzgE
— JoeFriday714 (@joefriday_714) August 17, 2023
Looking at the downside, 0.8770 acts as an initial support level for the pair, portraying the 50-hour EMA and a low of August 15. Further south, the next stop of the USD/CHF pair is located at 0.8755 (the 100-hour EMA, a low of August 11). Any intraday pullback below the latter would expose the next critical contention level at 0.8700. The mentioned level represents a low of August 4 and a psychological round figure. The next downside stop emerged at 0.8665 (low of July 31.