|

USD/CHF faces rejection at 1 (100%) Arc – Potential decline toward 0.8040

US Dollar /Swiss Franc (USD/CHF): Arc cycle analysis

USDCHF

Overview: Based on Arc Cycle Analysis applied to the 4h chart, USD/CHF is interacting with the 1 (100%) Resistance Arc within the current Arc Cycle. Bullish momentum has faded near this boundary, indicating that the upper Arc continues to cap upside expansion.

Chart

Market outlook

The 1 (100%) Arc continues to act as a resistance boundary, capping upside expansion. Bullish attempts have stalled beneath the Resistance Arc, indicating that the resistance remains intact.

If the Resistance Arc holds firm, a decline toward 0.8040 (0.786 Arc) becomes the primary scenario. Conversely, a sustained 4h close above the Arc would invalidate the bearish scenario, opening the path toward the next Resistance Arc.

Author

Mohamad Gharib

Mohamad Gharib

Independent Analyst

Mohamad Gharib is a Financial Markets Analyst and Quantitative Researcher with more than 18 years of experience in financial markets, including 15 years as an FX Quant Trader.

More from Mohamad Gharib
Share:

Editor's Picks

GBP/USD advances to fresh monthly high above 1.3550

GBP/USD gains traction in the American session and trades at its highest level in a month at around 1.3550 on its way to a positive weekly closing. The US Dollar remains under pressure following the disappointing Retail Sales data and helps the pair push higher.

EUR/USD climbs toward 1.1600 on broad USD weakness

EUR/USD gathers bullish momentum on Friday and trades in positive territory above 1.1550. The US Dollar weakens heading into the weekend as markets continues to scale back bets for a rate hike in September following the disappointing July Retail Sales and UoM Consumer Sentiment data.

Gold regains its traction, rises toward $4,400

Gold stages a rebound after coming in within a touching distance of $4,300 earlier in the day and closes in on $4,400. Easing expectations for a Fed interest rate hike in September helps the precious metal find demand heading into the weekend. Meanwhile, weak Retail Sales data from the US puts additional weight on the USD's shoulders.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10
Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.
 Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?
Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.