USD/CHF Price Analysis: Further upside hinges on 0.8820 breakout, Fed Minutes

USD/CHF edges higher past key support confluence as markets await FOMC Minutes.
Convergence of 200-SMA, three-week-old rising support line limits immediate downside.
Upside RSI (14) suggests further grinding of Swiss Franc pair towards the north.

Anil Panchal FXStreet

USD/CHF stays defensive around 0.8780 as it struggles to keep the five-week uptrend heading into Wednesday’s European session. That said, the Swiss Franc (CHF) pair’s latest inaction could be linked to the market’s cautious mood ahead of the Federal Open Market Committee’s (FOMC) latest Monetary Policy Meeting Minutes.

Technically, a downward-sloping resistance line from May 31, close to 0.8820 by the press tie, also challenges the USD/CHF buyers even if the quote manages to keep the previous week’s breakout of the 200-SMA. In doing so, the major currency pair also fails to justify the upbeat RSI (14) line, not overbought.

With this, the USD/CHF is likely to portray another attempt in crossing the 0.8820 hurdle, a break of which could propel the prices toward the mid-June swing low of surrounding 0.8900.

However, the 50% and 61.8% Fibonacci retracement of its May-July downside, respectively near 0.5580 and 0.8920, will act as the additional upside filters to watch.

On the contrary, a convergence of the 200-SMA and three-week-long ascending trend line highlights 0.8745 as the short-term key support.

In a case where the Fed Minutes disappoint the US Dollar bulls and drag the USD/CHF price below the 0.8745 support confluence, the odds of witnessing a slump towards the 0.8700 round figure and them to the multi-year low marked the last month around 0.8550 can’t be ruled out.

USD/CHF: Four-hour chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	0.8785
Today Daily Change	0.0001
Today Daily Change %	0.01%
Today daily open	0.8784

Trends
Daily SMA20	0.8716
Daily SMA50	0.8831
Daily SMA100	0.8913
Daily SMA200	0.9113

Levels
Previous Daily High	0.8797
Previous Daily Low	0.8744
Previous Weekly High	0.8783
Previous Weekly Low	0.869
Previous Monthly High	0.9005
Previous Monthly Low	0.8552
Daily Fibonacci 38.2%	0.8777
Daily Fibonacci 61.8%	0.8764
Daily Pivot Point S1	0.8754
Daily Pivot Point S2	0.8723
Daily Pivot Point S3	0.8701
Daily Pivot Point R1	0.8806
Daily Pivot Point R2	0.8827
Daily Pivot Point R3	0.8858

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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