Federal Reserve rate hikes expected: USD/CHF support levels in focus

Traders Union
All News
Currency
US Dollar vs Swiss Franc drops 0.71%

Highlights

The US Dollar reached a 16-month high against the Swiss Franc, confirming persistent strength in the currency pair.
USD/CHF gains have extended for seven consecutive sessions, reaching a new high during Asian trading this week.
Technicals show the pair trading below key short-term averages with mixed momentum signals, projecting a range of Fr.0.8258 to Fr.0.834 for the next day where a downward move is more likely.

Dollar momentum extends as new highs pressure Swiss franc

According to CNBC, the US Dollar reached a 16-month high against the Swiss Franc on Tuesday, marking a significant milestone in the currency pair’s recent performance. This move underscored the relative strength of the US Dollar and highlighted ongoing pressure on the Swiss Franc, with Tradingpedia reporting that USD/CHF extended its gains for a seventh straight day and set a new high during Asian trading on Thursday. These developments frame the current context of persistent US Dollar strength versus the Swiss Franc, even as broader market sentiment has shifted throughout September.

Conflicting signals emerge as key averages and momentum diverge

On the hourly chart, USD/CHF remains capped below both the MA-20 and MA-50, while support from the MA-200 persists underneath. The Ichimoku Kijun level at Fr.0.834 currently acts as immediate resistance. Momentum readings are mixed: MACD and ADX show neutral stances, while oversold conditions are apparent on the RSI, Stoch RSI, and CCI. Bull/Bear Power indicates intraday buyer dominance, but the Awesome Oscillator supports sellers, pointing to a divergence in short-term momentum signals.

Range-bound trading likely as resistance and support contain volatility

Over the next trading day, USD/CHF is expected to move within a band of Fr.0.8258 to Fr.0.834, with a 32% probability of an upward move. The most likely scenario is range-bound price action, with fluctuations contained by the Kijun resistance and lower support as the pair consolidates near current levels. An upside scenario could develop if the pair breaks above Fr.0.834, while renewed downward movement is possible should support at Fr.0.8258 fail, reflecting typical volatility for this pair.

Anton Kharitonov, analyst at Traders Union, notes that USD/CHF remains trapped between resistance at Fr.0.834 and support at Fr.0.8258. He sees mixed momentum and a lack of a clear directional push, despite recent milestones for the US Dollar. Range-bound trading is likely until the pair breaks key levels. "Base case remains neutral — until Fr.0.834 is broken, I see no compelling edge for either bulls or bears."

Earlier, analysts noted that the US dollar had reached its highest level against the Swiss franc in more than 16 months, underscoring persistent dollar strength relative to the franc. The latest technical signals and intraday momentum divergences suggest that while the USD/CHF pair is consolidating, traders should watch for a potential breakout above Fr.0.834 or a downside move if support at Fr.0.8258 gives way.

Source of Data: USD Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.