USD/CHF Failing at the 100 Daily SMA Again

The trend has been bearish for USD/CHF since November last year, with moving averages such as the 100 SMA (green) acting as resistance on the daily chart. At the end of April this pair fell to 0.88 lows, but since the beginning of May the price was retracing higher. Although buyers couldn’t push it above the 100 SMA which rejected this pair again.

USD/CHF pair experienced a strong rally earlier this week as the USD retreated on lower odds of the FED hiking rates again this time and pushed above the 0.9055 level. However, it encountered resistance at the broken support which came to the 100 SMA where buyers gave up. Yesterday, the price started to reverse, indicating a potential resumption of the main bearish trend.

Based on this observation, it is likely that we will see a continued bearish bias in the upcoming trading sessions. The initial targets for the downward movement are expected to be the breach of the 0.9055 level, which would then pave the way for a further decline towards 0.8965.

It is important to note that if the price manages to breach the 0.9030 level, it could halt the expected decline and lead to a period of bullish correction in the intraday and short-term timeframe. Although it will depend on the FED rhetoric today, after the rate decision. If the USD ends up turning bullish after the FOMC meeting, then we will observe if buyers can break above the 100 daily SMA, which would open the door for further gains.

Besides that, the Swiss National Bank Chairman Jordan is still beating the inflation drum, even though inflation in Switzerland is the lowest in Europe.

Comments from Jordan

USD/CHF Live Chart

USD/CHF

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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