USD/CHF Price Analysis: Bears in control and eye downside extension

USD/CHF bears in control below key resistance.
US Dollar offered as Fed bets of a hold are firm.

Ross J Burland FXStreet

The US Dollar slid again on Thursday but remained near three-month highs although there are bets that the Federal Reserve, which may have more work to do to combat inflation, could indeed hold this month.

DXY, hit a 2-week low as the Federal Reserve is now expected to leave interest rates unchanged when its policy committee meets next week. The CME Fedwatch tool is seeing only a 25% probability that the central bank will raise rates again.

This leaves the USD/CHF hanging and well offered with more downside on the cards if the bears stay in control below resistance as the following illustrates:

USD/CHF H1 chart

USD/CHF daily chart

The daily chart shows a firm target area to the downside towards and around 0.89 the figure. However, a significant correction into resistance could be in order first of all and that brings in the 61.8% Fibonacci into focus.

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.

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