USD/CHF Price Analysis: Bears and bulls battle it out at daily resistance
- USD/CHF bulls still in play but there are prospects of a meanwhile correction.
- Bears eye the 61.8% Fibonacci target to the downside.
The US Dollar smashed a three-month month high against a basket of currencies on Tuesday due to the uber-hawkish rhetoric from Federal Reserve Chair Jerome Powell.
Powell explained that the US central bank is likely to raise rates more than previously expected and warned that the process of getting inflation back to 2% has "a long way to go."
This has seen USD/CHF fly and test a key resistance area ahead of channel resistance as follows:
USD/CHF daily chart
There is plenty of upward momentum in this daily channel with 0.9450 eyed ahead of 0.9500.
USD/CHF H4 chart
At this juncture, we have prospects of a correction but it may take some doing to really impact the demand that we have seen on the Fed's revived hawkish rhetoric.
USD/CHF H1 chart
The bulls are still in play as we can see on the lower time frame and the bears will need to get onto the backside of the micro bullish trendline with 0.9400 as a key support ad structure point. The above chart offers a bearish scenario and price flow that could occur on a break of such structure with the 61.8 Fibonacci target level eye near 0.9340.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
