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Aayush Jindal

Key Highlights

  • USD/CHF declined heavily from the 0.9120 resistance zone.
  • It traded below a key bullish trend line with support near 0.9050 on the 4-hour chart.
  • EUR/USD gained bullish momentum and traded to a new monthly high above 1.0975.
  • Crude oil prices also broke the $81.60 resistance and climbed further higher.

USD/CHF Technical Analysis

The US Dollar started a fresh decline after it failed to surpass 0.9120 against the Swiss Franc. USD/CHF declined heavily below the 0.9080 and 0.9050 support levels.

Looking at the 4-hour chart, the pair traded gained bearish momentum below the 0.9020 support zone, the 1.0900 resistance, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).

Yesterday, the US CPI report was released. There was a drop in the CPI from 6% to 5% in March 2023 (YoY). It sparked bearish moves in USD/CHF and pushed the pair below the 0.8965 support.

The next major support is near the 0.8920 level, below which the pair might test the 0.8900 zone. Any more losses might send the pair toward the 0.8880 level.

On the upside, the pair is now facing resistance near the 0.8980 level. The next key resistance is near the 0.9020 zone. A clear move above the 0.9020 resistance might send the pair toward the 0.9050 zone. Any more gains might send the pair toward 0.9120.

Looking at crude oil prices, there was an upside break above the $81.60 resistance and the price might rise further in the near term.

Economic Releases

  • UK GDP for Feb 2023 (MoM) - Forecast +0.1%, versus +0.3% previous.
  • German Consumer Price Index for March 2023 (YoY) – Forecast +7.4%, versus +7.4% previous.
  • German Consumer Price Index for March 2023 (MoM) – Forecast +0.8%, versus +0.8% previous.
  • US Initial Jobless Claims - Forecast 232K, versus 228K previous.