USD/CHF Price Analysis: Bulls continue to gather strength ahead of Powell’s speech

USD/CHF rose near 0.8840, tallying 0.70% daily gains.
Thomas Barkin from Richmond’s Fed pointed out that the sooner inflation decelerates, the sooner the cuts.
Jobless Claims from the US came in higher than expected.

Patricio Martín FXStreet

In Thursday’s session, the USD/CHF gained ground near 0.8840 and seems en route to the 100-day Simple Moving Average (SMA) at 0.8890. On the US side, strong Jobless Claims figure and higher US yields traction the USD while the Swiss calendar had nothing relevant to offer.

Ahead of Jerome Powell’s speech on Friday at the Jackson Hole Symposium, the US reported lower-than-expected Jobless Claims from the second week of August. As a reaction, the US Treasury yields are rising, making the USD gain interest. In that sense, lower people filing for unemployment benefits indicates a robust labour market that could give the Federal Reserve (Fed) the green light to remain hawkish.

On the other hand, Thomas Barkin stated that the Fed has already done enough and that the sooner inflation comes down, the sooner the bank will start cutting rates. That said, Chair Powell’s words will be the highlight for investors to continue modelling their expectations towards the Fed’s next moves.

USD/CHF Levels to watch

The technical analysis of the daily chart suggests a neutral to bullish stance for USD/CHF as the bulls are recovering their ground. With an upward trend above its midline, the Relative Strength Index (RSI) points towards a rising bullish sentiment, while the Moving Average Convergence (MACD) histogram presents increasing green bars. On the broader scale, the pair is above the 20-day Simple Moving Average (SMA), but below the 100 and 200-day SMAs, indicating that the bulls aren't done yet and that the outlook is still tilted to the upside for the short term.

Support levels: 0.8800, 0.8760 (20-day SMA), 0.8750.

Resistance levels: 0.8890 (100-day SMA), 0.8900, 0.8950.

USD/CHF Daily chart

USD/CHF

Overview
Today last price	0.8843
Today Daily Change	0.0062
Today Daily Change %	0.71
Today daily open	0.8781

Trends
Daily SMA20	0.8762
Daily SMA50	0.8801
Daily SMA100	0.8894
Daily SMA200	0.909

Levels
Previous Daily High	0.8817
Previous Daily Low	0.8774
Previous Weekly High	0.8828
Previous Weekly Low	0.8738
Previous Monthly High	0.9005
Previous Monthly Low	0.8552
Daily Fibonacci 38.2%	0.8791
Daily Fibonacci 61.8%	0.8801
Daily Pivot Point S1	0.8764
Daily Pivot Point S2	0.8747
Daily Pivot Point S3	0.8721
Daily Pivot Point R1	0.8807
Daily Pivot Point R2	0.8834
Daily Pivot Point R3	0.8851

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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