USDCHF has broken above 61.8% fibb retracement level with an impulsive marobuzu candlestick on the daily chart - indicating that the pair has entered the hawkish trend with its near by targeted destination at 0.9370 price action. The technical analysis of the USDCHF price chart on daily timeframe shows USDCHF,Daily is rebounding above the 200-period moving average MA(200) which is starting to rise. We believe the bullish momentum will continue after the price breaches above the upper bound of the Donchian channel at 0.9280. Statistical data in the last couple of weeks paint an ambivalent picture of Swiss economic performance. Thus, retail sales fell in July when an increase was expected. However, producer and import prices as well as consumer prices rose more than expected in August. The Swiss Federal Statistical Office reported retail sales shrank 2.6% over year in July after 0.1% growth in June when 1.1% increase was expected. At the same time Consumer Price Index in Switzerland increased 0.9% over year in August after 0.7% growth in July, when 0.8% increase was expected. This is bearish for USDCHF. However technical setup is bullish for USDCHF.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

USDCHF dove towards exponential moving average 50 on the four hourly time frame but failed to entertain the bears and took a bullish reversal proceeding by breaking above the weekly major resistance turned support 0.9240-0.9270. The April/June fall at 0.9264/75 is under severe pressure and we now look for a break above here, which would finally confirm a sustained trending move higher, with scope then for the multi-year downtrend and more minor retracement resistance at 0.9345/56. We expect this level to prove a tough barrier if reached. We are expecting a bearish retracement from the current market price and most probably from 0.9370.

USDCHF

Sep 18 2021