- USD/CHF bounces off 0.9099 amid risk-off market sentiment.
- The US Dollar Index rises in the day, despite falling US T-bond yields.
- The USD/CHF 4-hour chart shows the pair is within a bullish flag, but a break below 0.9100 could invalidate the chart pattern.
The USD/CHF trims some weekly losses, advances sharply during the New York session, up 0.61%, trading at 0.9171 at the time of writing. Comments of some US CEOs about supply shortages, and higher costs amid companies missing earnings expectations, dampened the market sentiment. Additionally, inflationary pressures and central bank tightening monetary conditions kept investors at bay
Earlier in the day, the USD/CHF printed a weekly low of around 0.9099. But once American traders got to their desks, the pair jumped almost 70 pips, due in part to month-end flows and US dollar demand.
In the meantime, the US Dollar Index is rising almost 1%, sitting at 94.28 amid falling US T-bond yields. The US 10-year Treasury yield is flat, currently at 1.568%.
On the macroeconomic front, the US Personal Consumption expenditures, the Fed’s preferred inflation gauge, surged 3.6% year-on-year in September, a tad lower than expectations but in line with the August figure, signaling that inflation is stabilizing after a sudden jump to 6.1%.
USD/CHF Price Forecast: Technical outlook
4-hour chart
The USD/CHF pair is in a downtrend, shown by the simple moving averages (SMA’s) located above the spot price. Furthermore, a descending channel that seems to be a bullish flag capped the last downward move, bouncing off the bottom of the channel, towards the 50-simple moving average at 0.9181.
Nevertheless, the Relative Strength Index (RSI) at 48 is seesawing up and down, showing no clear confirmation of the actual trend.
If USD/CHF buyers fail to gain traction above 0.9200, investors could expect a renewed re-test of the daily lows around 0.9099.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.