USD/CHF Price Analysis: Faces some pressure near 0.9000 ahead of US Q3 GDP data

USD/CHF finds offers near 0.9000 as focus shifts to US GDP data.
The upbeat GDP report would impact the decision-making of Fed policymakers for the November meet.
USD/CHF delivered a bullish reversal after a breakout of the Inverse H&S chart pattern.

Sagar Dua FXStreet

The USD/CHF pair faced some selling pressure after printing a four-day high near the psychological resistance of 0.9000 in the European session. The Swiss Franc asset corrected gradually as the US Dollar struggled for upside ahead of the US Q3 Gross Domestic Product (GDP) data, which will be published at 12:30 GMT.

Analysts at Wells Fargo have forecasted the real GDP to expand at a 5.0% annualized rate in Q3. If realized, economic growth will be up 3.0% on a YoY basis, roughly half a percentage point ahead of its pre-pandemic average.

The upbeat GDP report would also impact the decision-making of Federal Reserve (Fed) policymakers for the monetary policy meeting scheduled for November 1. It is widely anticipated that the Fed will keep interest rates unchanged in the range of 5.25-5.50% due to higher long-term bond yields.

This week, the Swiss Franc remained under pressure amid weak ZEW Expectations-Survey data. The sentiment indicator showed that business and employment conditions deteriorated further in October.

USD/CHF delivered a bullish reversal after a breakout of the Inverse Head and Shoulder chart pattern formed on an hourly scale. The Swiss franc asset has reached to near the horizontal resistance plotted from October 19 high plotted around 0.9000. Upward-sloping 20-period Exponential Moving Average (EMA) indicates that the near-term trend is bullish.

The Relative Strength Index (RSI) (14) trades in the bullish range of 60.00-80.00, which warrants more upside ahead.

A fresh upside would appear if the Swiss Franc asset delivers a confident break above the psychological resistance of 0.9000. This would drive the asset toward October 17 high at 0.9032, followed by October 10 high at 0.9083.

In an alternate scenario, a downside move below October 25 low at 0.8920 would expose the asset to October 24 low at 0.8888. Further breakdown below the latter would drag the asset toward September 5 low around 0.8830.

USD/CHF hourly chart

USD/CHF

Overview
Today last price	0.8981
Today Daily Change	0.0013
Today Daily Change %	0.14
Today daily open	0.8968

Trends
Daily SMA20	0.9048
Daily SMA50	0.8969
Daily SMA100	0.8897
Daily SMA200	0.901

Levels
Previous Daily High	0.8969
Previous Daily Low	0.8921
Previous Weekly High	0.9042
Previous Weekly Low	0.8902
Previous Monthly High	0.9225
Previous Monthly Low	0.8795
Daily Fibonacci 38.2%	0.8951
Daily Fibonacci 61.8%	0.8939
Daily Pivot Point S1	0.8936
Daily Pivot Point S2	0.8904
Daily Pivot Point S3	0.8888
Daily Pivot Point R1	0.8985
Daily Pivot Point R2	0.9001
Daily Pivot Point R3	0.9033

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.

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