The pair showed a minor sell-off due to profit booking. Overall bias remains bullish as long as support 0.8780 holds. It hit a high of 0.89180 yesterday and is currently trading around 0.88600.
Last week, the U.S. dollar (USD) rose against the Swiss franc (CHF), showing a stronger dollar in the market. The increase in the exchange rate is linked to various economic indicators and positive market sentiment. Factors boosting the dollar include hawkish remarks from Federal Reserve officials about interest rates and the continued economic strength of the U.S. These developments have increased investor confidence in the dollar compared to other currencies, including the Swiss franc.
Technical Analysis
The pair is currently trading above the 34- and 55-EMA on the 4-hour chart.
Near-Term Resistance: Current resistance is at 0.8920. A break above this level could lead to targets at 0.8950/0.9000.The break above 0.87500 confirms that the decline from 0.9225 got completed at 0.83750.
Immediate Support: The next support level is at 0.8840. If this level is broken, the pair could drop to 0.8780/0.8720/0.8700/0.8660/0.8600/0.8580, 0.8550, 0.8525, 0.8499, 0.8440, 0.8420, 0.8390, 0.8365 (61.8% Fibonacci projection), or even 0.8340.
Indicator Analysis (4-hour chart)
- CCI (50): Bullish
- Average Directional Movement Index: Bullish
Overall, the trend remains neutral
Trading Recommendation
Consider buying on dips around 0.8845, with a stop loss set at 0.8780, and aiming for a target price of 0.9000.
