FxWirePro- USDCHF Trade Idea

The currency pair halted its two-week losing trend. It hit a low of 0.8970 and is currently trading around 0.90147. The intraday bias appears to be bearish as long as the resistance 0.9071 holds.

Speaking on February 17, 2025, Federal Reserve Governor Christopher J. Waller discussed monetary policy and economic outlook, remarking on uneven disinflation progress despite a tightened policy stance. He pointed out the strength of the labor market and robust spending, prioritizing data-driven analysis over speculation. Waller saw uncertainty regarding the policies of the new administration, adding that tariffs would have a limited pricing effect. Though not calling for imminent rate cuts, he signaled they might come later in 2025 in the event inflation stabilizes. His comments reveal guarded optimism and a pledge to watch inflation and economic metrics carefully, indicating persistent data-dependent thinking by the Federal Reserve.

Technical Analysis and Resistance Levels

The pair is trading below the 34-EMA and 55-EMA on the 4-hour chart indicating a bearish trend. The immediate resistance is at 0.9035 any break above targets 0.9070/0.9100/0.9150/0.9200/0.92250/0.9275/0.9030. 

Support Levels and Potential Declines

On the downside, near-term support is around 0.8940, any violation below will drag the pair to 0.8890/0.8800.

Bullish Indicators

CCI (50) - Bearish
Directional movement Index - Neutral

Trading Strategy Recommendation

It is good to sell on rallies around 0.90348-50 with a stop-loss at 0.90750 for a TP of 0.8940/0.8900.