USD/CHF Technical & Fundamental Outlook

Friday daily pin bar worked for USD/CHF and the pair yesterday gave a positive closing at 0.9087 with a daily high of 0.9108 amid a couple of positive economic reports about the US economy and Fed taper outlook.

Major Support & Resistance Levels

The pair has been trading in a 200 pips range since last three weeks as shown in the chart. At the moment in Asian session, spot is around 0.9084 and immediate resistance is seen at 0.9111 (23.6% fib level) ahead of 0.9137 (trendline resistance), and then 0.9150 (100 DMA).

On downside, the pair is likely to find support at 0.9080 (200 MA on H4) ahead of 0.9077 (55 DMA) and then 0.9065 (Hourly 55 & 100 MAs). A break below this support area may aggravate downtrend up to 0.8988 (trendline support).

Technical Indicators

MACD is showing bullish strength on 4 hour chart with no signs of divergence at any time frame. Relative Strength Index (RSI) is neutral, while Bollinger bands resistance (4 hour chart) is sitting around 0.9100. Bollinger bands are also showing support at 9074 in hourly time frame. It is also pertinent that 55 MA has just come above 100 MA in hourly time frame which is an alert signal for bullish reversal.

Fundamental Situation

Today no major release is due about Swiss or American economy; however, US Dollar is seen gaining momentum this week amid US growth optimism and Federal Reserve tapering outlook. This uptrend in US Dollar Index is likely to continue in today’s US session due to absence of any major release.

Later this month US officials will gather on Dec. 17-18. They may reduce the central bank’s $85 billion in monthly bond purchases “in coming months” as the economy improves, according to minutes of their October meeting released last month.

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Usman Ahmed

Usman Ahmed is an individual forex trader and market analyst. He holds a Masters of Business Administration (MBA) degree. His work includes fundamental and technical reports on various currency pairs, commodity futures and stock markets. His technical analysis features price action strategies.

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