USD/CHF Holds Gains: Will Dollar Bulls Be Back In Action?

Key Highlights

• USD/CHF experienced a correction and approached the 0.9050 support level.
• A significant declining channel is emerging with resistance at 0.9120 on the 4-hour chart.
• The EUR/USD pair is currently consolidating beneath the 1.0450 resistance.
• Gold prices have continued to rise and may target the $2,750 level.

USD/CHF Technical Analysis

The US Dollar has made a steady ascent, climbing above both the 0.8950 and 0.9000 thresholds against the Swiss Franc. In earlier trading, the USD/CHF pair even reached 0.9200 before encountering a pullback and some corrections.

In the current analysis based on the 4-hour chart, the pair has retraced to as low as 0.9050 and seems poised for its next movement. Importantly, it remains comfortably above the 200 simple moving average (indicated in green on the 4-hour chart). If the bulls regain their strength, a resistance level is anticipated near 0.9120.

Additionally, a key declining channel is forming with its resistance marked at 0.9120 on the same chart. Another critical resistance can be found near the 0.9140 position. Should the USD/CHF close above the 0.9140 level, it could pave the way for a subsequent rise, potentially pushing the pair towards the 0.9200 zone. The most significant hurdle to watch for might be around 0.9240.

On the downside, immediate support remains close to the 0.9050 mark, with the next substantial support found around the 0.9020 level. Should the pair continue to decline, it might even dip towards the psychologically significant 0.9000 figure, coinciding with the 200 simple moving average (green on the 4-hour chart).

Turning our attention to the EUR/USD pair, there has been a short-term recovery attempt; however, bearish movements are still active, particularly below the resistance zone at 1.0450.

This technical analysis highlights the current market dynamics as traders assess the potential movements. It will be essential to monitor the unfolding price action, particularly as economic events, like the upcoming speech from ECB President Christine Lagarde, could influence market trends.

USD, CHF, Gold