USD/CHF Price Analysis: Expect a rally above 0.9070 as Fed to raise rates further

USD/CHF has shown a recovery after building a base around 0.9050 as the Fed is expected to raise interest rates further.
A deal for raising the US debt-ceiling has been agreed upon by Republican leaders at the cost of a decline in the spending budget.
USD/CHF is anticipated to deliver a perpendicular upside after a break above the immediate resistance plotted at 0.9073.

Sagar Dua FXStreet

The USD/CHF pair has attempted a recovery move after building a base around 0.9050 in the early Toyo session. The Swiss Franc asset has been supported by solid bets for more interest rate hikes by the Federal Reserve (Fed). Rising consumption expenditure by United States households is showing that the stream could heat up inflationary pressures further.

S&P500 futures are holding significant gains freshly added in early Asia. A deal for raising the US debt-ceiling has been agreed upon by Republican leaders at the cost of a decline in the spending budget and will be moved to Congress, as announced by US President Joe Biden.

The US Dollar Index (DXY) is struggling in extending its recovery above 104.30 as US markets will be closed on Monday due to Memorial Day. Therefore, a less-volatile action is widely anticipated.

USD/CHF has comfortably shifted into a markup phase after delivering a breakout of the Wyckoff Accumulation pattern formed on a four-hour scale. The Swiss franc asset is expected to display wider bullish ticks and heavy volume as bulls remain solid in the markup phase. Upward-sloping 50-period Exponential Moving Average (EMA) at 0.9017 is providing support to the US Dollar bulls.

A confident break into the bullish range of 60.00-80.00 by the Relative Strength Index (RSI) would strengthen US Dollar bulls further.

Going forward, a decisive break above the immediate resistance plotted on May 25 high at 0.9073 will drive the asset toward the round-level resistance of 0.9100 followed by March 28 low at 0.9137.

In an alternate scenario, a downside move below May 16 low at 0.8929 will drag the asset toward April 14 low at 0.8867. A slippage below April 14 low will further drag the asset toward the Spring formation around May 04 low at 0.8820.

USD/CHF four-hour chart

USD/CHF

Overview
Today last price	0.9057
Today Daily Change	0.0008
Today Daily Change %	0.09
Today daily open	0.9049

Trends
Daily SMA20	0.8961
Daily SMA50	0.9014
Daily SMA100	0.9137
Daily SMA200	0.939

Levels
Previous Daily High	0.9075
Previous Daily Low	0.9019
Previous Weekly High	0.9075
Previous Weekly Low	0.8941
Previous Monthly High	0.9198
Previous Monthly Low	0.8852
Daily Fibonacci 38.2%	0.904
Daily Fibonacci 61.8%	0.9053
Daily Pivot Point S1	0.902
Daily Pivot Point S2	0.8991
Daily Pivot Point S3	0.8964
Daily Pivot Point R1	0.9076
Daily Pivot Point R2	0.9104
Daily Pivot Point R3	0.9132

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

AUD/USD drops to two-week low, further below 0.7000 after RBA's less hawkish rate hike

AUD/USD drifts lower for the second straight day on Tuesday, hitting a fresh two-week low during the Asian session after the Reserve Bank of Australia's (RBA) widely expected 25 bps rate hike. The decision was far from unanimous, with three members preferring to hold rates at 4.60%. This tempers expectations of further tightening, which, along with modest US Dollar strength, weighs on the currency pair.

USD/JPY fails near 159.00 amid weak USD, intervention risks

USD/JPY edges lower during Tuesday’s Asian session, reversing part of the previous day's gains to 158.00 as the US Dollar remains depressed amid hopes for Iran diplomacy and ahead of US midterm elections. Meanwhile, intervention risks support the Japanese Yen, though the uncertainty over the timing of the next BoJ rate hike caps gains. This keeps the pair confined within a familiar range and warrants caution before placing directional bets.

Gold holds Monday’s gains near $3,950 on US-Iran deal hopes

Gold clings to previous day’s recovery around $3,945 in the Asian trade on Tuesday, as hopes of a deal between the United States and Iran have kept oil prices under pressure. Still, the Gold price is close to its yearly low of $3,870.23 posted on Friday.

XRP and XLM slide as bearish signal grows

Ripple (XRP) and Stellar (XLM) remain under pressure on Tuesday, with bearish momentum capping recovery attempts. XRP trades around $1.25 as sellers maintain control, while XLM extends its decline below $0.162, raising the risk of a deeper correction. Meanwhile, mixed derivatives data, bearish on-chain metrics and weakening technical indicators all hint at continued downside risk for both altcoins.

What a split Congress means for the US Dollar

The United States is going to the polls on Tuesday, and much is at stake. The mid-term elections mean the renovation of roughly one-third of the Senate and all 435 of the House seats. Additionally, special elections in Florida and Ohio will be held to fill the seats vacated by US Secretary of State Marco Rubio and Vice President JD Vance.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.